Food products with alternative (non-food) uses

Some GST-free food products have alternative non-food uses. The GST status of a product depends on whether it is sold as:

  • food for human consumption, or
  • a non-food product.

The supplier must work out the type of sale. You can work this out by considering the:

  • physical product
  • nature of the sale.

For example, you might decide a food product is for non-food use because the product is:

  • called something other than food
  • stored in conditions or containers that are not suitable for food
  • packaged in a non-food type package or container
  • labelled, invoiced or marketed as a non-food product
  • delivered in a way not suitable for food.

Example: Food products that have alternative (non-food) uses

Vinegar sold as a condiment is GST-free as it is added to food for human consumption. Vinegar sold as a household cleaner is not GST-free because it is not a sale of food for human consumption.

End of example
    Last modified: 05 Aug 2016QC 16413