Breaking out the hay

Another EMG HST question:

Can a barn break out the hay on the board bill and not charge HST on it?  (Question paraphrased  for clarity)

The original inquiry mentioned that hay is zero-rated.  Well, to be precise, hay is zero-rated part of the time.  It depends on the quantity sold and this is where the catch is.  Hay is zero-rated when the quantity sold is greater than one large round bale or its equivalent.  A large round bale is defined by CRA as one that weighs at least 1650 lbs.  The bales, as defined by CRA, do not reflect any real hay bales that I have encountered. Notwithstanding this, it should be possible to invoice hay separately in zero-rated quantities, either on as a separate line item or on a separate invoice altogether.  The quantity is equivalent to 33 fifty-pound square bales so it may well be necessary to bill more than one month's hay at a time to make up the zero-rated quantity.

Here is a link to GST memoranda 4.4  dealing with zero-rated supplies.  Paragraphs 9 and 14.1 deal with hay and feed.


The information provided is intended to be general in nature. It is suggested that readers seek the advice of a CGA or other qualified professional for advice specific to their particular situation.