ZERO-RATED Goods and Services
(Rev.M04D10Y00)

Company X does not add GST to the sales of its "zero-rated" goods and services. 

Company X can claim Input Tax Credits on the expenses it incurred related to the "zero-rated" goods and services it sells.

 Examples of Zero-Rated goods and services include: 

• basic groceries (e.g. milk, bread, vegetables);
• agricultural products (e.g. wheat, grain, raw wool etc.);
• farm livestock;
• fishery products;
• prescription drugs and drug dispensing fees;
• medical devices;
• exports (most goods and services taxable at 7% in Canada are zero-rated when exported).