What Items Are Exempt from Sales Tax in Canada? Complete GST/HST Guide
Learn which items are exempt from GST/HST in Canada, including basic groceries, prescription drugs, and medical devices.
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Basic groceries, prescription drugs, and medical devices are generally exempt from the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) in Canada. This includes most food and beverages sold as basic groceries, prescription medications with a Drug Identification Number (DIN), and certain medical devices like hearing aids and artificial teeth. It's important to note that some items, such as prepared food over a certain amount, non-prescription drugs, and carbonated beverages, do not qualify for these exemptions.
FAQs & Answers
- Which common grocery items are exempt from GST/HST in Canada? Basic groceries such as most food and beverages sold for home preparation and consumption are exempt from GST/HST in Canada.
- Are all medications exempt from sales tax in Canada? Only prescription drugs with a valid Drug Identification Number (DIN) are exempt from GST/HST; non-prescription drugs are generally taxable.
- What types of medical devices qualify for GST/HST exemption? Certain medical devices like hearing aids and artificial teeth are exempt from sales tax under GST/HST rules.
- Are prepared foods always exempt from GST/HST in Canada? No, prepared foods over a certain price threshold do not qualify for the GST/HST exemption and are taxable.