Zero-rated sales
A sale is referred to as zero-rated if it is taxable at the rate of 0%. You are not required to collect GST or QST in this case.
Zero-rated property and services include
- basic groceries;
- prescription drugs;
- certain medical devices;
- most property in the farming and fishing sector;
- livestock in general;
- certain property or services exported outside Canada (or outside Québec, under the QST system only);
- certain passenger or freight transportation services;
- financial services (under the QST system only).
For more information, refer to the following brochures:
- The QST and the GST/HST: How They Apply to Medical Devices and Drugs (IN-211-V);
- The QST and the GST/HST: How They Apply to Foods and Beverages (IN-216-V).
Zero-rated sales entitle you to claim ITCs and ITRs.