Did You Know: Taxes on Food

"Did You Know" is our series of blog posts about Green Earth Organics: how it works, how you can do more with your account, etc.

I get a lot of questions about taxes on our bins, especially from people who are first signing up. What is taxed and what is not is a little confusing, so I hope this clarifies things:

In British Columbia, most food is not taxed. That means no tax on fruits, vegetables, canned goods, pasta, coffee beans, etc. As a result, none of our predesigned bins (the $27 Small Bin, $35 Medium Bin, or $46 Large Bin) have any taxes on them.

There are a few food items that are taxed. These are the items that are classified as "snacks" instead of "groceries" under the tax laws. Some times the line between the two seems very subjective, but it isn't up to us as retailers to decide what is taxable and what isn't; our suppliers and manufacturers tell us, based on the type of item and the size of the package. Some examples of food items that are taxed in British Columbia include pops and sodas in individual serving cans, chocolate bars, and granola bars.

Non-food items are all taxable. There is HST on all our cleaning products and personal care products (including feminine hygiene products and baby diapers).

If we charged for delivery, we would have to calculate HST on the delivery fee, but since delivery is free, that's not an issue. There's also no taxes on the refundable deposits. Most people's deliveries from Green Earth Organics will contain little to no tax.

I hope that clarifies a little bit of the tax system!