The term is understood to mean packaging undertaken or performed by the manufacturer, or undertaken on the manufacturer's behalf, as in a contract-for-labour arrangement. Snack mixtures Sch. This indicator is intended to capture situations where the order is prepared to the customer's specifications, and all or substantially all of the resulting food can be eaten either immediately or after being warmed. Ice made from water not suitable for human consumption (non-potable water), including salt water, is taxable. Food or beverages heated for consumption include food and beverages supplied by establishments (e.g., grocery stores or restaurants) that sell hot food and beverages that have been heated or kept hot so that they can be consumed hot. Further information on agriculture and fishing is contained in GST/HST Memorandum 4.4, Agriculture and Fishing. Ground Roasted Seeds of Evergreen is marketed, promoted, and advertised as a pleasant, flavourful warm drink. VI, Part III, para 1(o.1). Carbonated water, whether flavoured or not, is taxable regardless of the size of the bottle or packaging, as explained in paragraph 17 of this memorandum. Fruit bars are discussed in paragraphs 85 and 86 of this memorandum. dropper bottles. The following are examples of zero-rated supplies. 21. Sch. Afterwards, a maintenance daily intake of half of the optimal daily amount is recommended. 7. 23. A junk food tax would simply increase these taxes, by either increasing the GST/HST rate, or by taxing soda based on its sugar content. Generally, it is the view of the CRA that an average consumer would consider a product to be an ingredient if it added to the flavour, texture or appearance of the final product; that is, if it was integral to the final product. 129. The Act does not mention any minimum alcohol content to be used in the determination of whether or not a substance is a wine. VI, Part III, para 1(o.3). However, the products must be consumed as basic grocery items for nourishment (as opposed to products consumed for actual or perceived medicinal properties). the product is not pre-packaged for sale to consumers and is sold as single servings in quantities of more than five, fast food outlets or "quick service" outlets, lunch counters, coffee shops and snack bars, private or social clubs, and similar places or establishments where prepared food products are provided, passenger transportation vehicles of any type wherein food and/or beverages are provided for a separate consideration, any eating facility within a business entity, for example, a lunch counter within a retail department store. For example, the supply of an ice cream cake (the total weight or volume of which is greater than a single serving) that is divided into portions by pieces of wax paper or plastic will not be considered to be "sold as single servings" as the product is not designed and marketed for sale in single servings even though each piece weighs less than 500 grams or is less than 500 mL in volume. Rather, the principal purpose of the packaging is to protect the muffins in an efficient way, while allowing them to be viewed by prospective customers. For example, a box containing eight tarts may contain four cellophane packages, each containing two tarts. 38. Examples include: 139. From 2013 to 2017, spending on TV . Pre-mix is a carbonated beverage. If, however, it is determined that catering services have not been provided, it is possible that other provisions of the Act would apply to the facts that may cause the activity to be taxable. Where the focus is on the benefits of the product, rather than the form per se, this is an indication that the product would be considered a dietary supplement rather than a food, beverage or ingredient. Some examples of junk food include: cakes and biscuits fast foods (such as hot chips, burgers and pizzas) chocolate and sweets processed meat (such as bacon) snacks (such as chips) sugary drinks (such as sports, energy and soft drinks) alcoholic drinks This suggests that the product is consumed for its beneficial effects. Finally, Product D is labelled and marketed in a manner similar to products enumerated in paragraph 1(f). Mediterranean Pressed Olive Oil is zero-rated under section 1 of Part III of ScheduleVI. 62. These packages are zero-rated. Salty and savoury snack foods are generally crispy, crunchy, brittle or fluffy in texture, and are usually deep-fried but sometimes are baked. Dietary supplements are available in various forms including, but not limited to, tablet, pill, capsule, powder, liquid, gel, wafer and concentrates. VI, Part III, para 1(o.5). 4. Product B labelling includes the following: "Crackers", "Watch out for the outrageous taste of Product B" and "The Product is packed full of flavour that will tickle your taste buds to the max". The term "ingredient" is not defined in the Act. Individuals bring in their own containers or acquire a container at the store and fill the containers at the machines themselves. Drink-a-Min is not marketed in the same manner as a regular fruit juice. Although the muffins require little or no additional preparation, the muffin trays are not considered "other arrangements of prepared food" for the purposes of paragraph 1(o.3) and are zero-rated. Based on the facts set out above, Product D is taxable. Powdered fibre is marketed for its beneficial effects and is added to a glass of juice, milk or water as a means of ingesting it. 34. The grocery store also prepares and packs fresh hamburger patties from the meat counter. 127. cookies and biscuits, including Fig Newtons and oat cakes, loaves/breads such as banana or carrot loaf consisting primarily of a muffin mix or similar sweetened base, doughs of all kinds, including puff pastry and cookie doughs, pie shells, vol-au-vent, and phyllo leaves, English muffins without a sweetened filling or coating, traditional bread products such as bagels, scones and tea biscuits, croissants or bread rolls, without sweetened filling or coating. Food and beverages are usually consumed by an average person to sustain or maintain life, to allay hunger or thirst, or for enjoyment. Refer to paragraphs 136 to 139 of this memorandum for more information on paragraph 1(q). Indicator 4: Amenities for serving or consuming the food or beverages are supplied. Indicator 2: Consideration based on a per serving/person charge. Tonics such as cod liver oil taken for their general health benefits are taxable. It is sold in orange, lemon-lime and vanilla flavours. Food grade starch may be used in the manufacture of non-food items. The advertising, whether through print or electronic media, includes words such as "chips", "crisps", "puffs", "curls" or "sticks" (e.g., "chip-loving eaters" or "healthier than a chip"). It comes in four fruit flavours, packaged in 300 mL containers and sold in shrink-wrapped multiples of six containers. For example, table salt, salt for curing fish and pickling salt are zero-rated basic groceries. Cooking wine generally has a high salt content and is not suitable for consumption as a beverage. Supplies of products known as trail mixes that contain various combinations of the products described in paragraphs 66 to 68 of this memorandum are taxable. When suppliers purchase chocolate bars (65 - 150 grams) from a confectionery manufacturer and repackage them as fondue chocolate, the supply of the repackaged bar is taxable as "goods sold as candies" pursuant to paragraph 1(e) of Part III of ScheduleVI. For GST/HST purposes, a single serving is a serving of cake, pie, muffin, pastry, tart, cookie, doughnut, brownie, croissant with sweetened filling or coating or a similar product weighing less than 230 grams or a portion or part of a good under paragraph1(m) when offered for sale as a single serving. Children under the age of 16 are to take the product at half the rate listed for the smallest adult. 93. "Junk food taxes have the potential to substantially reduce the disease burden that results from unhealthy food and beverage consumption in the United States," said Renata Micha, RD, PhD, associate research professor at the Friedman School at Tufts and one of the study's senior authors. 132. 160. Salads not canned or vacuum sealed Sch. Instructions advising oral absorption (e.g. Fondue chocolate to be used in the preparation of food is traditionally supplied in bar form (170 - 200 grams) in the baking section of grocery stores and is zero-rated. Energy bars and protein bars that qualify as meal replacements or nutritional supplements are zero-rated except when sold from vending machines. Ice made from potable water is zero-rated when sold as ice cubes or as a large block regardless of how the ice is used. The UPC is not required to be on packaging under the Consumer Packaging and Labelling Act. Vitamins, minerals and additives sold for use in the manufacture of food or beverages for human consumption, such as vitamins purchased by a manufacturer for use as ingredients in breakfast cereal, are zero-rated as ingredients for food or beverages for human consumption. Product F ingredients include peas, starch, canola oil, sugar, wheat flour, salt, monosodium glutamate, horseradish and tartrazine. The consideration paid by the customer is based on a per person or per serving charge. The supply of an individual single serving of unbottled water (i.e., under 600mL) is taxable as it is excluded from zero-rating by paragraph 1(r) of Part III of Schedule VI and is not zero-rated under section 2 of the same Part or Schedule of the Act. The dessert squares are arranged in a pattern that is pleasing to the eye, and the squares require little or no additional preparation. Supplies of food preserved in alcohol are zero-rated. 166. No other processing of the food or beverages by the customer should be necessary. 13. A charge that is based on the mass or volume of food or on the number of pre-packaged quantities (i.e., a charge for one kilogram of shepherd's pie, five litres of coffee or two dozen dinner rolls) does not fall within the meaning of this indicator. Fibre Mix is marketed as a convenient, easy-to-use powder that produces effective detoxification effects. held under the tongue). Cooking wines (including de-alcoholized cooking wines) sold and represented as condiments, and normally purchased in grocery stores, regardless of whether made by a fermentation process or from spirits, are zero-rated. It is sold loosely in 200 gram bags in the cracker section of the supermarket. The following supplies of baking ingredients are zero-rated: 47. VI, Part III, s2. "Imagine an apple might cost 5 cents, a filet of salmon 25 cents. The caterer then prepares the food for consumption at the site. The delivery of doughnuts and coffee is considered to be catering and is taxable. 148. 22. The supply of a decorated wedding cake is zero-rated as long as it is food for human consumption, supplied by the cake decorator, and it weighs at least 230 grams. These bars may have a muffin-like texture or a fruit filling in a baked crust. 39. Based on the facts set out above, Product F is taxable. 71. Supplies of the following food additives: ethyl alcohol and other alcohols, and supplies of propane and carbon dioxide (CO2) are not zero-rated as ingredients for basic groceries. They most often consist of a baked product such as a cracker or cookie along with a spreadable product (e.g. Alberta's oil booms have allowed it to pay the bills while keeping the lowest tax regime in Canada along with no provincial sales tax. 59. Based on the above facts, catering is being supplied. 108. Junk food taxes have been urged for years by various authorities, the ostensible reason being that they would . Fyber is zero-rated under section 1 of Part III of Schedule VI. 167. The act, which took effect on April 1, 2015, imposes an additional 2% tax on unhealthy foods such as soda, chips, and candy and eliminates the current 5% tax on healthy foods such as fruits and vegetables. 65. 158. Response to Junk Food Tax : Canada Feb 22, 2006 The common Canadian household consumes more junk-food that it does Cigarettes.. And with most junk food prices either very low or very high, I think this will have an effect on us. Some packages considered "pre-packaged for sale to consumers" contain other packages within them. Obesity has become a "collective" issue that presumably concerns us all. The product is compared to other products that are not considered to be food, beverage or ingredients. The product is loosely bagged and sold in 140 gram bags. In addition, it would not be possible to remove one portion of ice cream from the container without exposing the other portions as the lid covers the entire container; therefore, this two-litre container of ice cream is zero-rated. The product has a DIN, and the label lists the "active" ingredients and "non-medicinal" ingredients separately, indicating the amount of each active ingredient. Also, the appearance (small thin slice) and the texture (crunchy) are similar to those products enumerated in paragraph 1(f). For example, an establishment sells a cone containing 250 mL of ice cream. The pizzas require a significant amount of additional preparation (they must be cooked) before they can be eaten and they are not likely to be cooked or served on the cardboard trays. As part of the program, eight glasses of water each day should be drunk. Supplies of beverages (other than unflavoured milk), or pudding, including flavoured gelatine, mousse, flavoured whipped dessert product or any other products similar to pudding are taxable, except. Although Fyber may be used as an ingredient and has a general statement on its label concerning a health benefit, it is regarded as a breakfast cereal. These trays are advertised as "party trays". Product E is advertised in a magazine as: "Seven reasons potato chips are shaking in their bags", "intense chip flavours and a great chip crunch" and "Experience the evolution of snacking". Other factors that indicate the product is not a beverage are the fact that there is a recommended daily dosage, the product has a DIN, some of the ingredients are listed as active ingredients and the product name draws attention to the active ingredients. Fyber is composed of various grains and is fortified with vitamins and minerals. 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