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GST/HST Ruling on Zero-Rating Supply of Lignin Products for Industrial and Commercial Use

  • Correspondence received regarding application of GST/HST to supply of Product A and Product B
  • HST rates in participating provinces: 13% in Ontario, 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island
  • GST rate in rest of Canada: 5%
  • Company is a GST/HST registrant and supplies Product A and Product B in different sizes
  • Product A is sold in bulk and is listed under class 8.30 in Feeds Regulations, 1983
  • Product B is intended for industrial and commercial purposes
  • Ruling: Supply of Product A and Product B subject to GST/HST at applicable rates based on province
  • Explanation: Supply of prescribed property is zero-rated, but Product A and Product B do not qualify for zero-rating based on regulations

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.



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