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Are granola bars supposed to be taxed?

  • Last Updated:
  • Jun 9th, 2016 5:51 pm
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[OP]
Newbie
Apr 30, 2016
4 posts

Are granola bars supposed to be taxed?

bought some nature valley bars from costco and i got taxed. Do the kirkland granola bars also have tax?
5 replies
Newbie
Apr 26, 2016
33 posts
105 upvotes
Granola bars are considered a snack, not an essential grocery item, and therefore are subject to tax.
Deal Fanatic
Nov 15, 2008
9558 posts
3853 upvotes
Granola bars are taxable, cereal bars are not.
Member
User avatar
Apr 25, 2011
299 posts
113 upvotes
lecale wrote: Granola bars are taxable, cereal bars are not.
What is the difference though for tax purposes?
Deal Fanatic
Nov 15, 2008
9558 posts
3853 upvotes
ticky wrote: What is the difference though for tax purposes?
62. Supplies of granola products (e.g., granola bars and similar products), but not including any product that is sold primarily as a breakfast cereal, are taxable.

63. Granola generally includes a mixture of cereals (e.g., rolled oats, rice, or other whole grains), brown sugar, honey, and/or syrup as the main ingredients, and may include nuts and dried fruit. The mixture may be sold loose or pressed into bars.

Granola bars

64. Granola bars generally have a mixture of cereals (e.g., rolled oats, rice, or other whole grains) and honey and/or syrup as the main ingredients, and may include nuts and dried fruit. The ingredients in granola bars are not processed to a great extent, thereby retaining the distinct character of each ingredient within the bar. Granola bars may have a chocolate or sweetened coating.

65. Bars that contain a mixture of cereals and honey and/or syrup, where the ingredients have been processed to the point that they have lost their distinct character, are not considered to be granola bars, but rather cereal bars or muffin bars.

http://www.cra-arc.gc.ca/E/pub/gm/4-3/4-3-e.html

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