Food Purchases for Animals
Information and Disclaimer
This interpretation letter was issued based on the specific circumstances or situation of a taxpayer or vendor and the law and tax policy in effect at the time the ruling was issued. Specific facts relevant to your situation may change the application of the tax. In accordance with the Freedom of Information and Protection of Privacy Act, all confidential and identifying information has been removed from this interpretation letter. Please be aware that any statute or policy referred to in this letter may have been superseded. Where a letter contains links to a retail sales tax publication, the link is to our current publication on that subject, regardless of the date that the ruling was originally issued, and the current publication may not be reflective of the information originally provided. In no event shall the Government of Ontario be liable for any damages whatsoever arising out of, or in connection with, the use of the information contained herein.
Interpretation Letter AG-0007, November 2000
Thank you for your facsimile message of September 12, 2000 (received by our office on October 31, 2000) inquiring about the application of Ontario retail sales tax on food purchases for animals. We apologize for the delay in responding to your inquiry.
Understanding of Facts
It is our understanding that Company A would like confirmation that the application of RST on food purchased for animals is still as stated in a 1989 letter received from our Audit section, i.e.:
"Pet food and other food products purchased to feed animals in the zoo are subject to tax. While food products purchased for human consumption are exempt from tax, these products are subject to tax if purchased to feed animals in the zoo. Purchases of hay and straw are exempt from tax, whether used as food or bedding for the animals."
Legislation and/or Administrative Policy
Paragraph 7(1)15 of the Retail Sales Tax Act (Act) provides an exemption for agricultural feeds which includes all feed for livestock, all hay and straw and any drug or medicine fed to or injected into livestock.
Livestock is defined under section 1 of Regulation 1013 to mean:
"...cattle, sheep, goats, hogs, poultry, horses, mules, ponies, donkeys and bees, but does not include pets such as cats, dogs and small animals, live fish and birds"
Food products for human consumption are exempt of RST under paragraph 7(1)1 of the Act and are defined under Regulation 1013 as follows:
"'food products' includes poultry and other livestock purchased for human consumption, insulin, vitamins, artificial sweeteners and any dietary supplement or adjunct that is not a drug or medicine, but does not include, liquor, beer, wine, chewing gum, lozenges, cat, dog, bird or other animals foods, root beer extracts, malt and malt extracts."
ANALYSIS AND CONCLUSION
Feed purchased for livestock is exempt of RST. With respect to Company A's operations that include true livestock i.e. cattle, sheep, goats, hogs, poultry, horses, mules, ponies, donkeys and bees, because the animals are defined under our legislation, no RST is payable by Company A for their feed.
However, with respect to the exotic or other animals used for breeding and display, these animals do not fall squarely within our definition of livestock and, as a result, their feed is subject to RST.
Purchases of hay and straw are exempt from RST, whether used as food or bedding for the animals.
Enclosed for your information is Retail Sales Tax Guide #504 - Animals and Pets.
If you have any further questions, please contact our office.
ISBN 0-7794-2507-3
© Queen's Printer for Ontario, 2002
