Small Manufacturers or Producers Exemption Regulations — 2
2 (1) The following classes of small manufacturers or producers are exempt from payment of consumption or sales tax on goods manufactured or produced by them in the operations referred to in this section: (a) manufacturers, other than those who elect to operate under a licence, who sell goods of their own manufacture that are otherwise subject to consumption or sales tax or who manufacture goods for their own use that are otherwise subject to consumption or sales tax, if the value of such goods sold or manufactured for their own use does not exceed $50,000 per calendar year; (b) manufacturers in any of the following classes who sell goods of their own manufacture that are manufactured to the requirements of each individual customer and that are otherwise subject to consumption or sales tax: (i) blacksmiths, (ii) opticians, (iii) plumbers, (iv) cider millers who produce cider for a customer from the customer’s apples, (v) manufacturers of show cards and signs that are (A) made of cardboard, cotton or paper or other non-durable materials, and, (B) drawn or lettered by hand, and (vi) portrait photographers; (c) barristers, solicitors and notaries engaged in the practice of law, accountants engaged in the practice of accountancy and engineers engaged in the practice of engineering to the extent that they manufacture printed matter in connection with the rendering of their professional services to the public; (d) persons who manufacture original engineering and planning design models of ships, buildings, industrial plants or construction layouts, excluding persons who manufacture merchandise display models or replica models; (e) persons who manufacture arrangements of artificial or natural flowers or foliage in a retail establishment for the purpose of sale in such retail establishment directly and exclusively to users; (f) persons who manufacture field coils solely for their own use as parts in the repair of motors and transformers for their customers; (g) [Revoked, SOR/85-619, s. 1] (h) operators of radio and television stations that manufacture discs, film and slides, magnetic tapes, photographs and props and sets; (i) picture framers who frame pictures, photographs, diplomas or similar goods that are the property of their customers, using frames that they manufacture themselves or purchase from others for such operations; (j) persons engaged in microfilming operations; (k) theatre arts groups who manufacture props and sets solely for their own use and not for resale; (l) persons who manufacture potting soil or potting soil mixtures; (m) persons who design and produce goods, from basic materials and through the skillful use of their hands and hand tools only, but not including goods that (i) are made wholly or in part of precious metals, (ii) are made wholly or in part of precious or semi-precious stones, and (iii) are made in a repetitive manner through the use of jigs, templates, moulds, dies or other similar devices, except that such devices may be used to produce the original or first unit; (n) persons who produce steam other than those manufacturers or producers who produce steam for their own use in the manufacture or production of goods; (o) persons who (i) purchase or import new motor vehicles designed for highway use, or the chassis therefor, other than vehicles referred to in section 1 of Part XVII of Schedule III to the Act, and (ii) have the vehicles or chassis further manufactured on their behalf (A) by licensed manufacturers who are liable to pay sales tax on the charge made for the further manufacture and any applicable excise tax, and (B) for their own use or for sale or lease to consumers or users; and (p) persons described in the definition of manufacturer or producer in paragraph 2(1)(g) of the Excise Tax Act who (i) sell directly and exclusively to consumers or users, or (ii) rent, lease or take for their own use motorhomes that they have imported into Canada. (2) When the value of the sales of a manufacturer