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Buying coffee at FS/BB - Taxes?

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  • Apr 24th, 2012 3:33 pm
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Buying coffee at FS/BB - Taxes?

So according to the Ministry of Finance, it looks like coffee is not taxed:

http://www.fin.gov.on.ca/en/guides/rst/500.html

But my friend told me, if you buy K-Cups and the likes at at FS or BB, you do get taxed. Is that true?

My last batch of K-cups came from Amazon, so I haven't actually tried buying from the stores, just wondering.
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ToniCipriani wrote: So according to the Ministry of Finance, it looks like coffee is not taxed:

http://www.fin.gov.on.ca/en/guides/rst/500.html

But my friend told me, if you buy K-Cups and the likes at at FS or BB, you do get taxed. Is that true?

My last batch of K-cups came from Amazon, so I haven't actually tried buying from the stores, just wondering.

if that is the case it seems reasonable to me. they are more like coffee cartridges than a bag of coffee but if i am wrong there is a disclaimer at the top that does say:
Publication Archived

Notice to the reader: For Retail Sales Tax (RST) – On July 1, 2010 the 13 per cent Harmonized Sales Tax (HST) took effect in Ontario replacing the existing provincial Retail Sales Tax (RST) and combining it with the federal Goods and Services Tax (GST). As a result, RST provisions described on this page and in other publications ended on June 30, 2010.

Effective July 1, 2010 this publication was archived for RST purposes only. Use caution when you refer to it, since it reflects the law in force for RST at the time it was released and may no longer apply.
----------------------
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ToniCipriani wrote: if you buy K-Cups and the likes at at FS or BB, you do get taxed. Is that true?
IIRC there was a thread about this on RFD. It may have been in the long K-Cups thread.
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there's no tax on k-cups or tassimo discs - if you've ever ordered from Timothy's, look at your order - no tax charged - there's no tax on coffee
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tvwatcher wrote: there's no tax on k-cups or tassimo discs - if you've ever ordered from Timothy's, look at your order - no tax charged - there's no tax on coffee

Yeah, but the question is from Future Shop and Best Buy...
[OP]
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Siefer999 wrote: if that is the case it seems reasonable to me. they are more like coffee cartridges than a bag of coffee but if i am wrong there is a disclaimer at the top that does say:

Found a more updated one

http://www.fin.gov.on.ca/hstmobile/sub- ... es&lang=en

Seems like there's no distinguishing between coffee cartridges or coffee, both considered "basic groceries", i.e. no tax.
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BB / FS scamming you if they charge the tax. Probably need the money as they are going under.
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If they're charging tax, it's not going to FS/BB, it's being remitted to the CRA.
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doberman_baby wrote: BB / FS scamming you if they charge the tax. Probably need the money as they are going under.

They are NOT going under. Can you people understand the difference between the States and Canada?

And Coffee is not taxed in any form
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exiledinottawa wrote: And Coffee is not taxed in any form
Well I wouldn't say "any" form. Otherwise why do I pay tax for my coffee at Tim Hortons?
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habsfan321 wrote: Well I wouldn't say "any" form. Otherwise why do I pay tax for my coffee at Tim Hortons?

Because you are not buying coffee, you are buying the service of preparing a cup of coffee, which obviously would fall under the HST
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habsfan321 wrote: Otherwise why do I pay tax for my coffee at Tim Hortons?
For the same reason you don't pay tax on hamburger meat, onions, mustard, potatoes, etc. but you do when they're combined and cooked into a burger and fries.
exiledinottawa wrote: Because you are not buying coffee, you are buying the service of preparing a cup of coffee, which obviously would fall under the HST
Not exactly ;)

The revenooers didn't design the tax system to be understandable or to make sense, e.g. HST takes a sweet and sour approach to food
With the HST, basic groceries such as meat, potatoes, fruits and vegetables escape the HST, but once items are put in packages and processed somewhat, the tax applies...

Fruit drinks, if they contain less than 25 per cent of natural fruit juice are taxable, and the tax man has taken a close look at that frozen concentrate...
and (in ON), Harmonized Sales Tax for Ontario • Point-of-Sale Rebate on Prepared Food and Beverages

And another distinction: A frozen pizza (for example) is free of HST unless the store pops it into the oven before they sell it to you. Then you pay HST on the full value of the pizza, not just the "service" of heating it up.
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I would say you are correct and Future Shop has a mistake in their system. It is not the first time it has happened, nor is it the first retailer, nor is it on purpose - it's simply human error as FS does not sell many items not taxable.

I would send an email to them to point it out, and simply do not buy your coffee pods there until it's fixed (I don't know why you would anyway since they are not a good price). If they ever have a great sale on them then just PM it at Walmart or Loblaws.
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I bought K-Cups twice in the past month or so.

Both times, no HST from FS.

Edit: Also no HST on BB purchases in Jan 2012

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