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