- The document discusses GST/HST application on ice cream and similar products
- HST rates are 13% in Ontario and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
- GST rate is 5% in the rest of Canada
- The inquiry was about how single servings are determined for zero-rating ice cream and similar products
- A photograph of a specific mL container of a frozen dessert was provided as an example
- Questions were raised about whether quantity alone determines taxability or if packaging, marketing, and promotion also play a role
- The CRA’s consideration of the Nutrition Facts table’s per serving reference amount in determining single servings was also questioned
- Section 165 of the ETA mandates GST/HST on all taxable supplies unless they are zero-rated or exempt
- Zero-rated supplies include food or beverages for human consumption unless excluded by specific paragraphs in Schedule VI
- Paragraph 1(k) of Part III of Schedule VI excludes single servings of ice cream and similar products from zero-rating
- CRA’s guidelines on single servings for these products are detailed in paragraphs 74 to 84 of GST/HST Memorandum 4-3, Basic Groceries
Source: taxinterpretations.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
