Information Requirements for Basic Grocery Ruling Requests

GST/HST Notices – Notice 338
September 2024

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Tax Act (ETA). The information in this publication does not replace the law found in the ETA and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the ETA or relevant regulation, or call GST/HST Rulings at 1?800?959?8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1?4, Excise and GST/HST Rulings and Interpretations Service, explains how to obtain a ruling or an interpretation and lists the GST/HST rulings centres.

If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1?800?567?4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.

For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1?855?666?5166.

GST/HST rates

Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in the participating provinces at the following rates: 13% in Ontario and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, refer to GST/HST Technical Information Bulletin B?103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.

Table of Contents

• Overview
• Requirements for a grocery product ruling request
  • Product sample provided
  • Product sample not provided
• Where to write for a ruling
• Additional information
• Service standards for responding

Overview

The supply of basic groceries, which includes most supplies of food and beverages marketed for human consumption is zero-rated under section 1 of Part III of Schedule VI. However, certain categories of food items, for example, carbonated beverages, candies and confectionery, and snack foods are taxable. For more information, refer to GST/HST Memorandum 4-3, Basic Groceries.

A ruling may be requested to obtain certainty regarding the tax status of a grocery product. GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service, provides general information on the rulings and interpretations service offered by the Canada Revenue Agency (CRA) in respect of the GST/HST. This notice provides additional information on how to obtain a ruling specifically on the application of the GST/HST to grocery products.

If a grocery product’s tax status is in doubt, the CRA will consider the manner in which the product is displayed, labelled, packaged, invoiced and advertised to determine its tax status.

The CRA receives requests for GST/HST rulings with respect to grocery products from manufacturers, distributors, importers, retailers, and consumers. The following information request standards ensure that the necessary information required to properly determine the tax status of a grocery product is provided by the requestor regardless of who makes a request concerning a particular product.

Requirements for a grocery product ruling request

Requests for rulings on grocery products must comply with the information and documentation requirements listed in GST/HST Memorandum 1-4.

Product sample provided

Where possible, requests for rulings on grocery products should also include a product sample for each grocery product. The product sample should include the full product packaging, containing the following information:

• package contents such as the total weight or volume of the contents and the number of units of the product within the package, where applicable
• any marketing claims (for example, claims of health benefits of the product)
• list of ingredients
• any nutritional information (for example the nutrition facts table, nutrition information, supplemented food facts table, or product facts table)

Product samples of perishable items or items that require cold storage should not be provided.

In addition to the above, the CRA will require the following:

• for products sold in retail stores, details concerning the placement of the product in store aisles (for example, what products are sold alongside the product in question)
• for products sold online, the section of the online store in which the product is being sold and a URL to the product, if possible

Product sample not provided

If it is not possible or appropriate to provide a product sample, requestors will be required to provide the following:

• clear colour photographs of all sides of the product’s packaging displaying the following information:
  • package contents such as the total weight or volume of the contents and the number of units of the product within the package, where applicable
  • any marketing claims on the label
  • list of ingredients
  • any nutritional information (for example, the nutrition facts table, nutrition information, supplemented food facts table, or product facts table)
• where possible, colour photographs of the product both inside and outside of an opened package

The list provided above is not exhaustive, and the CRA may request additional information and/or documentation depending on the nature of the product.

To the extent that a product is not labelled in English or French, the CRA may not issue a ruling.

Where to write for a ruling

All requests for rulings on grocery products, including those that contain product samples, should be sent to:

GST/HST Rulings Directorate
Canada Revenue Agency
5th floor
Tower A
Place de Ville
320 Queen Street
Ottawa ON K1A 0L5

The CRA will not return any samples provided. Samples will be disposed of when no longer required.

Additional information

Providing clear and complete product information with a ruling request will ensure that the CRA considers all the relevant information regarding the request and will assist in responding in a timely manner. If the CRA does not receive all required information to issue a ruling, it will advise the requestor of the information required, and where appropriate, the CRA may instead provide an interpretation as described in GST/HST Memorandum 1-4.

Service standards for responding

As set out in GST/HST Memorandum 1-4, the CRA has a goal to respond to written requests for GST/HST rulings and interpretations (other than highly technical and precedent-setting and/or policy?setting rulings and interpretations) within 45 business days of CRA receipt of the request and all relevant facts and supporting documentation including any additional information requested by the CRA. Our aim is to achieve this service standard 80% of the time.

If the information contained in this notice with respect to ruling requests for grocery products is not received at the time of receiving the request, the requestor will be notified as to the missing information and the 45 business-day period will not commence until such time that the information is received. If a request includes multiple products, the CRA may respond with separate letters.

Further information