Zero-Rated Sales

A sale is referred to as zero-rated if it is taxable at the rate of 0%. You are not required to collect GST or QST in this case.

Zero-rated property and services include

• basic groceries;
• prescription drugs;
• certain medical devices;
• most property in the farming and fishing sector;
• livestock in general;
• certain property or services exported outside Canada (or outside Québec, under the QST system only);
• certain passenger or freight transportation services;
• financial services (under the QST system only).

For more information, refer to the following brochures:

• The QST and the GST/HST: How They Apply to Medical Devices and Drugs (IN-211-V);
• The QST and the GST/HST: How They Apply to Foods and Beverages (IN-216-V).

Zero-rated sales entitle you to claim ITCs and ITRs.