What Grocery Items are charged the HST?

[Musashii]

hmmmm I found this on a site (as of April 2008)

http://www.rev.gov.on.ca/en/taxtips/rst/01.html

Common goods that are not taxable

Here are examples of the most common goods that are not taxable to anyone

* basic groceries such as flour, sugar, spices, breads, cereals, eggs, butter, margarine, cheese, peanut butter, jam, honey, fruits, vegetables, milk and yogurt
* food products (except for candies, confections, snack foods and soft drinks)
* prepared foods sold by an eating establishment for $4 or less
* children's clothing (including diapers)
* footwear costing $30 or less
* feminine hygiene products
* newspapers
* drugs and medicine sold under a doctor's prescription
* goods designed solely for people with physical disabilities
* vitamins and minerals.

[vadess40]

Does the <$4 rule apply if you purchase more than one kind of prepared food? Like if you bought 2 donuts and 1 biscuit at Tim Horton's, and they were less than $4 (atleast I think they are) will they not be taxed, or are fast food places subject to different rules?

[recneps77]

I used to work in fast food a few years back (before HST)
The only items under $4 that received PST were non-food goods (toys, etc)
and soft drinks.

Any restaurant food will always be charged at least 5% (fast food or 'slow' food, doesn't matter). AFAIK there are no exceptions.
The only place to get tax free food is from a grocery store, and only those items mentioned in this thread

Note that the list immediately above is referring to PST ('not taxable' meaning no PST applied). The GST component would still apply in the case of prepared foods/restaurant.
(which is now the 5% HST)

[JamesK]

^^^^
I don't know about now, but for years, in Ontario, a single muffin etc. would be taxable, but a box of them wasn't.

[LONSat]

In Ontario the less than $4 rule would apply to only the Provincial portion of the HST. Convienence food under $4 should be taxed at 5% and above that the full 13%. The GST/HST rules around food is quite convoluted with some baked goods having tax if the quantity is under 6 and then layering in the old $4 rule.

Then there is the restricted ITC rules for business. The whole Canadian VAT system is a bloody mess in my opinion. Far from simple any more and don't get me started on the boutique Federal tax credits.

We are probably 5 years away from a tax system cleanup to clean up the tax mess that the Federal and Provincial governments have generated. The GST is far better than the old Federal Manufacturers Tax and the income tax credit system should be effecient but our elected officials have so tinkered with it that it needs another overhaul and simplification.