Food Sales Tax Exemptions - Burnaby Bylaws

Taxation and Finance British Columbia 4 Minutes Read · published May 24, 2026 Flag of British Columbia · By Daniel Roy

In Burnaby, British Columbia, retailers selling food must follow federal and provincial tax rules and comply with municipal business licence and bylaw requirements. Basic grocery items are governed by federal GST and provincial PST rules, while the City of Burnaby regulates licensing and local business conduct through its bylaws and licensing pages City of Burnaby - Business licences[1] and consolidated bylaws City of Burnaby - Bylaws[3]. For federal treatment of basic groceries and zero-rating under GST, refer to the Canada Revenue Agency guidance Canada Revenue Agency - GST/HST for businesses[2].

Basic groceries are commonly zero-rated for GST and often exempt from PST, but packaging and prepared-food rules can change that.

Overview of What Is Exempt

Which food sales are exempt from sales tax depends on whether the item is classified as a "basic grocery" or a prepared or heated food. Municipal bylaws do not create federal or provincial sales-tax exemptions but they control licensing and local compliance for retailers.

  • Basic unprepared groceries - typically zero-rated for GST and often PST-exempt (see federal/provincial guidance).[2]
  • Prepared, heated or ready-to-eat foods - may be taxable depending on federal and provincial rules; check CRA and BC guidance.[2]
  • Municipal licence requirements - selling food generally requires a valid City of Burnaby business licence and adherence to bylaw provisions.[1]

Penalties & Enforcement

Enforcement for tax treatment and for municipal compliance are handled by different authorities. The City of Burnaby enforces licence and bylaw compliance through its By-law Enforcement section and licensing office; details and procedures are provided on the City pages cited above. Tax assessment and penalties for federal or provincial sales-tax errors are administered by the Canada Revenue Agency and the Province of British Columbia respectively.

  • Fine amounts for municipal bylaw breaches: not specified on the cited City of Burnaby bylaws page.[3]
  • Tax penalties for incorrect GST/PST remittance: amounts and interest are set by CRA and BC government rules and are not specified on the City of Burnaby pages; consult the federal and provincial tax pages for figures.[2]
  • Escalation: first offences, repeat or continuing offences and ticketing procedures are managed by By-law Enforcement or taxing authorities; specific escalation ranges are not specified on the cited City pages.[3]
  • Enforcer and inspection pathway: By-law Enforcement and Licensing at the City of Burnaby for local compliance; CRA and BC tax authorities for tax audits and assessments.[1]
  • Appeals and review routes: appeal processes for municipal tickets or orders are set out in bylaw documentation; tax assessments have CRA and provincial appeal procedures. Exact time limits are not specified on the cited City pages and must be confirmed on the relevant authority pages.[3]
  • Non-monetary sanctions: orders to comply, suspension of licences, requirement to correct signage or operations, and referral to court are enforcement options described by municipal enforcement practice; specific remedies are not fully enumerated on the cited City pages.[3]

Applications & Forms

  • Business Licence Application - available online from the City of Burnaby; fees and categories are listed on the Business Licence page.[1]
  • Renewals and deadlines - renewal periods and expiry dates appear on the City licensing pages; if no form is published, contact the licensing office for guidance.[1]
Apply for or renew your Burnaby business licence before opening or when changing the nature of food sales.

How-To

  1. Identify the product: determine whether each item is a basic grocery or prepared food using CRA and BC guidelines.[2]
  2. Confirm municipal requirements: check the City of Burnaby business licence categories and bylaw obligations.[1]
  3. Obtain required licences and inspections: submit the business licence application and any health/food permits as required by Burnaby and Fraser Health if applicable.
  4. Collect and remit taxes correctly: charge or zero-rate GST and apply PST where required; keep records to support exemptions.
  5. Respond to notices: if audited or ticketed, follow appeal instructions and seek review within posted time limits.
Keep clear product descriptions and receipts to support any exemption claims.

FAQ

Are basic groceries exempt from sales tax in Burnaby?
Basic groceries are generally zero-rated for GST and often PST-exempt under federal and provincial rules; municipal bylaws do not change GST/PST classification. See CRA guidance for GST and provincial guidance for PST.[2]
Do I need a City of Burnaby business licence to sell food?
Yes, food retailers must hold a City of Burnaby business licence and comply with bylaw requirements; apply or renew via the City business licence page.[1]
What if I sell both grocery and prepared foods?
Classify each item; prepared or heated foods may be taxable while basic groceries may be exempt. Keep clear records and consult CRA and provincial guidance to determine tax treatment.[2]

Key Takeaways

  • Tax exemptions for food are set by federal and provincial authorities, not by the City of Burnaby.[2]
  • Burnaby requires appropriate business licences and bylaw compliance for food retailers.[1]
  • Maintain clear records and product descriptions to support exemption claims and audits.

Help and Support / Resources

  1. [1] City of Burnaby - Business licences
  2. [2] Canada Revenue Agency - GST/HST for businesses
  3. [3] City of Burnaby - Bylaws

Categories

General Governance and Administration Public Safety Public Health and Welfare Land Use and Zoning Housing and Building Standards Transportation Environmental Protection Parks and Public Spaces Business and Consumer Protection Taxation and Finance Labor and Employment Education Civil Rights and Equity Elections and Campaign Finance Events and Special Uses Signs and Advertising Utilities and Infrastructure Technology and Data
Daniel Roy

Daniel Roy

Municipal Bylaw Analyst

Daniel analyses municipal bylaws across Canadian provinces and territories. He checks every guide against official municipal and provincial sources.