GST/HST Rulings and
Interpretations Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
XXXXX K1A 0L5
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Subject:
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GST/HST INTERPRETATION
Tax Status of Farm Equipment
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Dear XXXXX
Thank you for your memorandum of October 17, 1996 addressed to Ken Syer and your correspondence of July 11, 1997 addressed to Susan Mailer. Your correspondence was forwarded to me for a response. I apologize for the delay in responding.
Interpretation Requested
In your memorandum of October 17, 1996 you wish to know whether XXXXX are zero-rated items. Both products are attachments to swathers and are used to assist in canola harvesting.
XXXXX
XXXXX
In separate correspondence dated XXXXX , you also asked us to present to the Department of Finance additional information concerning two products known as XXXXX It has previously been determined by the Department in an interpretation you wrote dated July 7, 1997 that both of these items are subject to either the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST). The manufacturer wishes to have both of these items added to the list of zero-rated farm equipment found in the Agricultural and Fishing Property (GST/HST) Regulations.
Interpretation Given
Based on the information provided, all models of the products known as XXXXX and XXXXX will be subject to the GST/HST, and not zero-rated.
The Agricultural and Fishing Property (GST/HST) Regulations issued pursuant to section 10 of Part IV of Schedule VI to the Excise Tax Act identifies a list of property that is zero-rated when supplied by way of sale. The sale of farm equipment that is not specifically listed will be subject to GST or HST. Currently, there is no provision in either the Agricultural and Fishing Property (GST/HST) Regulations or the Excise Tax Act to zero-rate the supply of products such as XXXXX and XXXXX and XXXXX to the Department of Finance for their consideration. I have also provided the Department of Finance with the information that you sent to us concerning XXXXX It is within the purview of the Department of Finance to determine whether these products will be added to the Agricultural and Fishing Property (GST/HST) Regulations, and thus be zero-rated.
Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952 - 8253.
Yours truly,
Gregory Smart
A/Rulings Officer
Industries Unit
General Operations and Border Issues Division
GST/HST Rulings and Interpretations Directorate
Legislative References: s. 1 of the Schedule to the Agricultural and Fishing Property (GST/HST) Regulations
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