In 2022, 31,231,522 people in Canada filed taxes. Whether you’re a resident or a nonresident of Canada, you will have certain tax liabilities. The good news is, you don’t have to pay tax on everything. That’s a relief, isn’t it?
There are two kinds of things that are not taxed: zero-rated and exempt. Zero-rated items are taxable, but the GST/HST applied to them is zero. Exempt items are simply excused from tax in Canada.
Let’s learn about the things that aren’t taxed in Canada.
It’s great that basic necessities such as groceries aren’t taxed in Canada. Since people require these things daily, it’s important to keep them affordable.
Groceries that are exempt from tax include dairy products, eggs, cereals, vegetables, poultry, meat, fish, coffee, tea, and more.
Farm Livestock and Equipment
Certain farm livestock is non-taxable if it’s used for human consumption. For example, rabbits and goats, which humans consume, are zero-rated. However, animals that count as pets or are fur-bearing are not exempt from taxes. Moreover, equipment such as planters, seeders, and tractors are free from tax.
Drugs that require a prescription and dispensing fees are non-taxable. However, over-the-counter and non-prescription medicines such as aspirin, vitamin, minerals, etc., are not taxed.
Several medical devices, especially for the older population, are not taxed. For example, if you need walkers or hearing aids, you don’t need to worry about paying tax on them.
Other non-taxable medical items include wheelchairs, canes, orthodontics, asthmatic devices, eyeglasses, etc. If you also need a little buddy who can protect you, guard dogs are free of tax too.
Feminine Hygiene Products
Few countries understand the importance of feminine hygiene products. They’re often classified as “luxury goods”, despite being a basic necessity for women. Canada’s progressive federal laws exempt sanitary napkins from taxes. Women belonging to all sorts of socio-economic classes deserve to be able to afford them.
Last but not least, you don’t have to pay tax in Canada if you’re moving goods and services from here to another country.
Taxes help the government invest in infrastructure and other services for the country’s development. However, removing taxes from products makes them accessible and affordable for citizens.
Reach out to us to learn more about taxes in Canada.