tax charges on farm feed

Does anyone in BC know if we are
suppose to pay tax of farm feed or not.
Some places I go they do not charge
other places do. So who is right.
Oh these are the same products.
Layer Pellet and rolled Barley/Oats.

The way I understand it is that "luxury" animals such as horses etc you are charged tax but if it's for say chickens that you sell eggs from then you don't get charged. I always go to the same place for my feed and I don't get charged tax on my duck and chicken feed but I do pay tax on my horse, alpaca etc feed.

They charge tax if its under a certain quantity. If its a large quantity they don't. Same goes for hay. Its just since the HST was brought in. I won't buy hay from the feed store anymore if I can help it. Another nail in the coffin of the small farmer...

Well I got charged at two different places
for layer and 50/50 grain for sheep.
As for quantity that doesn't work either
because I have bought for 1 or each to
6 or each sometime they charge sometime they
don't.
Makes you realy wonder what they do
with the tax they collect???

I look up a GST bulletin (applies to provinces which charge HST as well) on this subject tonight. Where the livestock feed is used for human consumption (meat, eggs, milk) the feed is zero rated. Where it is used to feed an animal not for human consumption than GST or HST applies. If you use your horse for riding, work or recreation than GST applies to its feed, but if the horse is being raised for meat than its feed is zero rated. The retailer may or may not be applying the GST policies correctly. GST is an end user tax. The retailer pays GST to his supplier, but charges GST to the consumer. The GST charged on sales in most cases is greater than the GST charged on purchases. The retailer pays the different between the two amounts to CCRA. Farmers don't charge GST (HST) on sales, but pay on many purchases and may (should) apply for a refund. I'm not looking forward to a return to PST where our small tractor is not a farm vehicle but our quad with carrying baskets is a farm vehicle.

Farmers - Non-Taxable List (Bona Fide Farmers)
On July 1, 2010, the Provincial Sales Tax (PST) was replaced with the Harmonized Sales Tax (HST). However, the information on this webpage and other PST publications may still be applicable if, under the transitional rules, PST applies.

For information on the transitional rules, please see the PST Transitional Rules

For information on the application of the HST, please visit the Canada Revenue Agency website at [You must be registered and logged in to see this link.]


This is a list of non-taxable equipment used by bona fide farmers. The items on this list are only non-taxable when used for a farm purpose. This is not a complete list.

Parts that are specifically designed to repair items on this list are non-taxable. Generic parts, including parts that can be used on a variety of items, are taxable. For more information, please see Bulletin SST 023, Bona Fide Farmers.

Products not on this list may be taxable and may be found on our taxable list. If an item is not on either of these lists and you are unsure how tax applies, please contact us.

•Above ground manure aerating systems
•Adhesive pest management material - including barriers, strips, insect trap coating, bird repellent and glue trap coating
•Aerators
•Agricultural feeds, including:
◦bone meal, edible
◦brewer's yeast
◦bran
◦calcium
◦dairy concentrate, 32%
◦fish oil, edible
◦flax
◦grain foods
◦hay
◦hog supplement
◦iron
◦limestone, ground
◦molasses - for cow mash
◦minerals for livestock - when incorporated into feed
◦oats
◦oils - when incorporated into feed
◦phosphorus
◦pig material
◦pigeon feed
◦poly nutrin - when incorporated into feed
◦poultry grit
◦pulp made from crushed apples - for cattle food
◦rabbit feed
◦salt blocks and licks
◦salt mineral blocks
◦salt-stock - iodized, powdered
◦vitamins - when mixed or incorporated into feed
◦wheat-germ - when mixed or incorporated into feed
◦wheat-germ oil - for breeding
Please note: agricultural feeds are non-taxable to everyone if used solely for an agricultural purpose.


•Agricultural lime

Taken from: [You must be registered and logged in to see this link.]
I found nothing anywhere that said the HST changes this.

Hay 14.1 Hay is ordinarily sold in bales of various sizes and shapes. For a supply of hay tobe zero-rated, the quantity sold must be more than one large round bale or its equivalent.
A single large round bale is one that weighs at least 750 kg or 1650 lbs. Accordingly, a
sale exceeding this weight would be zero-rated. If the hay were sold in square bales, for
example, each weighing 50 kg or 110lbs., the supply would have to be at least 16 bales to
be zero-rated.

Feed for farm livestock,
fish, poultry and rabbits
ss 1(2) of the schedule

(2) Feed, when sold in bulk quantities of at least 20 kg (44 lbs.) or in bags that contain
at least 20 kg (44 lbs.), that:
(a) is a complete feed, supplement, macro-premix, micro-premix or mineral
feed (other than a trace mineral salt feed), all as defined in the Feeds
Regulations, 1983 (made under the Feeds Act);
(b) is labelled in accordance with the Feeds Regulations, 1983 (made under the
Feeds Act); and
(c) is designed
(i) for a unique species or class of farm livestock, fish or poultry that
are ordinarily raised or kept to produce, or to be used as, food for
human consumption or to produce wool, or
(ii) for rabbits.
Feed for ostriches, rheas,
emus, or bees
ss 1(2.1) of the schedule
(2.1) Feed, when sold in bulk quantities of at least 20 kg (44 lbs.) or in bags that
contain at least 20 kg (44 lbs.), that is designed for ostriches, rheas, emus or bees.

10. In consultation with the seed industry, the Canada Revenue Agency has
developed guidelines to determine where seeds are supplied in a quantity larger than that
ordinarily sold or offered to consumers. The guidelines are based on the size of the seed.
Small seeds supplied in packages of a quantity exceeding 125 g and large seeds in
quantities exceeding five kg are zero-rated. Large seeds refer to peas, corn and beans
only; any other type of seed is considered a small seed. When small seeds are supplied on
a count basis, they are zero-rated when supplied in quantities exceeding 2500 seeds.
When large seeds are supplied on a count basis, they are zero-rated when supplied in
quantities exceeding 20,000 seeds.
11. Small packets of garden seeds sold to consumers

Taken from:http://www.cra-arc.gc.ca/E/pub/gm/4-4/4-4-e.pdf

Which means hay is only tax exempt if bought in quantities exceeding 16 square bales.
Pre-mixed animal feeds are expempt if purchased in minimum 20 kg quantities.
GRains and seeds are exempt if sold in quantities greater than 125g for small seeds and 5kg for peas, corn & beans.

Thanks SucellusFarms
I went to the website and have
saved it for further reading.
may have to print it off and
take in to supplier next run.