Zero-rated Supplies for GST/HST

The producers of zero-rated supplies (supplies means sales of goods or services) do not have to collect GST or HST on the products or services they sell, but are entitled to tax benefits in the form of input tax credits (“ITCs”) for GST or HST incurred in the production of the zero-rated supply, in other words they can deduct the GST/HST that they pay, and may be eligible for a tax refund. Zero rated supplies are defined in the Excise Tax Act and include prescription drugs, medical assistive devices, feminine hygiene products, basic groceries, agriculture and fishing, exports, transportation services and financial services.