Zero-rated (0%) goods and services

Some goods and services are taxable at 0% (zero-rated) . This means GST/HST is not charged on the supply of these goods and services.

However, a GST/HST registrant can claim an input tax credit for the GST/HST paid or owed on expenses made to provide zero-rated sales or supplies.

Goods and services taxable at 0% include:

• basic groceries such as milk, bread, and vegetables. To learn which products are zero-rated, see GST/HST Memoranda Series Chapter 4-3, Basic Groceries;
• agricultural products such as grain, raw wool, and dried tobacco leaves. To learn which products are zero-rated, see GST/HST Memoranda Series Chapter 4-4, Agriculture and Fishing;
• most farm livestock. To learn which products are zero-rated see GST/HST Memoranda Series Chapter 4-4, Agriculture and Fishing;
• most fishery products such as fish for human consumption. To learn which products are zero-rated, see GST/HST Memoranda Series Chapter 4-4, Agriculture and Fishing;
• prescription drugs and drug-dispensing fees. To learn which drugs or fees are zero-rated, see GST/HST Memoranda Series Chapter 4-1, Drugs and Biologicals;
• medical devices such as hearing aids and artificial teeth. To learn which medical devices are zero-rated, see GST/HST Memoranda Series Chapter 4-2R, Medical and Assistive Devices;
• exports. To learn which goods or services are zero-rated, see GST/HST Memoranda Series Chapter 4-5-2, Exports - Tangible Personal Property and GST/HST Memoranda Series Chapter 4-5-3, Exports - Services and Intellectual Property;
• many transportation services where the origin or destination is outside Canada. To learn which transportation services are zero-rated, see GST/HST Memoranda Series Chapter 28-2, Freight Transportation Services and GST/HST Memoranda Series Chapter 28-3, Passenger Transportation Services; and
• any supply of property or a service that is for the use of the Governor General.

Forms and publications

• Guide RC4080, GST/HST Information for Freight Carriers
• GST/HST Memoranda Series Chapter 4, Zero-Rated Supplies
• GST/HST Memoranda Series Chapter 28, Special Sectors: Transportation
• GST/HST Info Sheet GI-048, Fertilizer and Pesticides
• GST/HST Info Sheet GI-049, Fishing Equipment and Products
• GST/HST Info Sheet GI-051, Zero-Rated Farm Equipment