Section 164.1 — Excise Tax Act: Meaning of feed

For the purposes of this section, feed means grain, seed or fodder that is described in section 2 of Part IV of Schedule VI and used as feed for farm livestock that is ordinarily raised or kept to produce, or to be used as, food for human consumption or to produce wool; feed that is a complete feed, supplement, macro-premix, micro-premix or mineral feed (other than a trace mineral salt feed), the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Part IV of Schedule VI; and by-products of the food processing industry and plant or animal products, the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Part IV of Schedule VI. For the purposes of this Part, where, in the course of operating a feedlot that is a farming business within the meaning of the Income Tax Act , a person makes a supply of a service and the consideration for the supply (in this subsection referred to as the “total charge”) includes a particular amount that is identified in the invoice or agreement in writing for the supply as being attributable to feed, the provision of the feed shall be deemed to be a supply separate from the supply of the service and not to be incidental to the provision of any other property or service; the portion, not exceeding 90%, of the total charge that is reasonably attributable to the feed and is included in the particular amount shall be deemed to be the consideration for the supply of the feed; and the difference between the total charge and the consideration for the supply of the feed shall be deemed to be the consideration for the supply of the service.