Idea 12of 23Builds onHST has a federal part and an Ontario part
Basic groceries have no sales tax
Does everything you buy have sales tax on it?
Today you'll discover
- which food has no HST
- which food does
- how to tax only some lines
Think firstMilk, bread, apples and a bag of chips
The subtotal is $16.00. Which of these things will have HST added?
Decide first, then press Next. Look for the small marks beside each line.
A receipt: milk $5.00, bread $3.00, apples $4.00, chips $4.00, subtotal $16.00. Marks appear beside each line: no HST, no HST, no HST, HST. The right side finds 13% of $4.00, the taxed part: $0.40 + $0.12 = $0.52, and the total $16.52. The last step shows milk, eggs and a case of pop.
See the whole ideathe big idea and the key word, in one place
The big idea
Basic groceries have no sales tax; only the taxed items count toward the HST.
Easy to get wrongSnacks like chips, candy and pop are taxed, even though they are food. So are meals from a restaurant.
Key word
- basic groceries
- food bought to cook and eat at home, like milk, bread, eggs, fruit and vegetables; they have no sales tax
Ready to use it?
- Tell which grocery items have HST.
- Find the HST on only the taxed items.