Returnable beverage containers

There is no GST/HST on deposits for returnable beverage containers that are refundable to consumers.

When you buy from a bottler or manufacturer that sells beverages in sealed returnable containers, GST/HST is not charged on the refundable deposit. When you sell the beverages in the sealed containers to your customer, you do not charge GST/HST on the refundable deposit.

When you accept used and empty containers from customers, no part of the refund to the consumer is a refund of tax. Therefore, you do not claim an input tax credit (ITC) for that refund. When you return used containers to a depot or a bottler, there is no GST/HST charged on the refund you receive.

You collect and remit the tax on the non-refundable amounts when you sell beverages. Therefore, you claim ITCs for the tax on the non-refundable amounts when you purchase beverages, except if you are located in a participating province. For more information, see HST and returnable beverage containers.

In some provinces, some non-refundable amounts such as environmental levies and recycling fees are charged separately in addition to the refundable deposit. For more information, see Levies and returnable beverage containers.

Certain registrants, such as take-out establishments that provide eating areas on their premises, may charge tax on the refundable deposit. If you are such a registrant and you do not charge tax on the refundable deposit, you will have to pay an amount equal to the tax on the refundable deposit when you collect the empty containers from your premises and redeem them for the refunds.

For more information, see GST/HST Technical Information Bulletin B-089, Returnable Containers.