Under the GST and QST systems, sales of confections that may be classed as candy are taxable, whether such confections are sweetened naturally or artificially, or coated or treated with candy, chocolate, honey, molasses, sugar, syrup or artificial sweeteners.

Taxable confections

Examples of confections sold as taxable products are:

• apples
• candy floss
• chewing gum
• chocolate bars
• chocolate-covered coffee beans and chocolate-covered raisins
• chocolates containing fruits, toffee, caramel, fondant or liqueur
• fruit drops and jelly sweets
• gingerbread
• marshmallows and cream sweets
• meringue nests
• nuts
• popcorn
• raisins
• sesame bars

Zero-rated confections

Examples of confections sold as zero-rated products are:

• angelica (a plant used, among other things, for cake decoration) and cocktail cherries
• baker's chocolate
• bulk industrial chocolate
• chocolate for fondue, sold in bars (unless repackaged as chocolate for fondue and sold door-to-door)
• chocolate spread
• edible cake decorations packaged and sold as cake decorations
• liquid chocolate icing
• meal replacement bars