FoodPlug Product Tax Allocation Schedule

Effective date: September 2, 2026
Last updated: September 2, 2026

This Product Tax Allocation Schedule (the "Schedule") forms part of the FoodPlug Terms of Use, Consumer Terms of Purchase, Pricing and Fees, Refund and Order Issue Policy, and Vendor Agreement.

It allocates responsibility for GST/HST and other sales tax calculated on Vendor products or other supplies in an Order. It does not provide tax advice to a Vendor or Customer.

If this Schedule conflicts with another FoodPlug document on who collects, receives, reports, remits, refunds, or records Product Tax, this Schedule controls for that issue. Mandatory law always controls.

1. Definitions

Product Tax means GST/HST or another sales tax calculated on Vendor products or other supplies in an Order. Product Tax does not include tax included in FoodPlug's Marketplace Fee or Platform Fee.

Registered Vendor means a Vendor registered under the normal GST/HST regime for the relevant supply and whose registration is effective at the time of the supply.

Non-registered Vendor means a Vendor that is not registered under the normal GST/HST regime for the relevant supply, including a small supplier that has not voluntarily registered.

Vendor-Collected Product Tax means Product Tax for which the Vendor is the person legally required to charge, collect, report, and remit.

FoodPlug-Collected Product Tax means Product Tax for which FoodPlug is the person legally required to charge, collect, report, and remit, including where FoodPlug is treated as the supplier for GST/HST purposes under distribution-platform rules.

Qualifying Goods means goods to which the applicable GST/HST distribution-platform provisions apply, including qualifying tangible personal property supplied through the platform and delivered or made available in Canada, subject to the Excise Tax Act and applicable guidance.

Final Sale Price means the amount on which applicable law requires Product Tax to be calculated for the product supply, after applicable product discounts and subject to tax rules. It does not automatically include a FoodPlug fee, optional tip, or another amount that is not part of the taxable product consideration.

2. Commercial seller and statutory tax treatment

The Vendor remains the underlying commercial seller and Merchant of Record for Vendor products. The Vendor remains responsible for product legality, food safety, ingredients, allergens, labelling, preparation, packaging, fulfilment, delivery, customer service, refunds, licences, permits, insurance, staff, and other commercial obligations.

For a supply by a Non-registered Vendor, applicable law may treat FoodPlug as the supplier solely for GST/HST collection, reporting, and remittance. That limited statutory treatment does not make FoodPlug the preparer, manufacturer, commercial seller, fulfiller, or guarantor of the product.

3. Tax allocation matrix

FoodPlug may mark an Order as requiring review where Vendor status, product classification, place of supply, or the applicable platform rule is uncertain. FoodPlug may prevent checkout or payment until the treatment is resolved.

4. Registered Vendor obligations

A Registered Vendor must:

• provide its correct legal name, business number, GST/HST registration number, effective date, and any cancellation date;
• confirm that its registration applies to the relevant supply;
• provide accurate product facts needed to determine whether a product is zero-rated or taxable;
• notify FoodPlug before a registration or business-status change takes effect or immediately after becoming aware of an unreported change;
• report and remit Vendor-Collected Product Tax to the applicable authority;
• preserve legally required tax records; and
• cooperate with corrections, refunds, audits, assessments, and information requests.

FoodPlug may calculate and collect Vendor-Collected Product Tax through an integrated payment flow, include it in Vendor proceeds, and generate a receipt using Vendor information. FoodPlug acts as payment and administrative facilitator for that amount unless mandatory law assigns FoodPlug another role.

5. Non-registered Vendor obligations

A Non-registered Vendor must:

• accurately declare that it is not registered under the normal GST/HST regime;
• not provide a false, incomplete, expired, or misleading registration statement;
• not independently add, invoice, retain, or describe an amount as GST/HST unless legally authorized;
• provide accurate product and fulfilment information needed for FoodPlug's tax determination;
• notify FoodPlug promptly if it becomes registered or is required to register; and
• cooperate with FoodPlug's collection, reporting, remittance, refund, audit, and recordkeeping duties.

Where FoodPlug-Collected Product Tax applies, the tax:

• is charged on the legally required Final Sale Price;
• is collected and remitted by FoodPlug in FoodPlug's own statutory capacity;
• is not Vendor revenue;
• is not part of the FoodPlug Marketplace Fee or Platform Fee;
• is not tax that FoodPlug remits on the Vendor's behalf; and
• is excluded from the Vendor's available balance, settlement, and payout.

6. Integrated-payment Orders

For an integrated payment:

1. FoodPlug determines the Product Tax treatment using the Vendor's status, product information, place of supply, and applicable law.
2. Checkout displays Product Tax separately from FoodPlug fees.
3. The payment flow collects the complete authorized Order total.
4. Vendor-Collected Product Tax may be included in Vendor proceeds.
5. FoodPlug-Collected Product Tax is segregated from Vendor proceeds and retained for FoodPlug's reporting and remittance obligation.
6. The transaction ledger records the responsible tax collector, rate, taxable base, amount, registration reference, jurisdiction, and legal-rule version.

7. External and manual-payment Orders

Payment method does not change who is legally responsible for Product Tax.

If a Customer pays a Vendor directly by cash, Interac e-Transfer, bank transfer, an external terminal, or another manual method on an Order for which FoodPlug is the legal Product Tax collector:

• FoodPlug appoints the Vendor as its limited collection agent solely to receive the FoodPlug-Collected Product Tax displayed for that Order;
• the Vendor accepts that appointment by accepting or completing the Order;
• the Customer satisfies the displayed Product Tax payment obligation by paying it to the authorized Vendor;
• the Vendor receives the amount for FoodPlug and not as beneficial owner;
• the Vendor must record it separately, must not treat it as revenue or available funds, and must not set it off against another amount;
• the Vendor must report receipt and remit or account for it to FoodPlug by the stated due date; and
• FoodPlug remains responsible for reporting and remitting it to the tax authority as required by law.

FoodPlug may collect the amount through the Vendor Fee Balance, a future settlement or payout, an authorized billing method, an invoice, or another lawful method.

FoodPlug may disable or restrict an external payment method for an affected Order if FoodPlug cannot reasonably assure compliant calculation, collection, reconciliation, refund, or remittance.

The limited collection agency does not authorize the Vendor to bind FoodPlug, make representations for FoodPlug, file a FoodPlug tax return, change the Product Tax amount, or hold itself out as FoodPlug's general agent.

8. Product classification and place of supply

Basic groceries may be zero-rated. Prepared food, beverages, snack products, and other items may be taxable depending on their nature, packaging, quantity, marketing, and manner of sale.

The applicable GST/HST rate may depend on where the goods are delivered or made available. The Vendor must provide complete and accurate product, pickup, delivery, and location information.

FoodPlug may apply a review hold when the classification is uncertain and may require a ruling, professional advice, or additional evidence before enabling the product.

9. Receipts and credit notes

Checkout, Order records, receipts, invoices, and credit notes will identify, where required:

• the Vendor as the commercial seller;
• the product description and Final Sale Price;
• the Product Tax rate and amount;
• whether the Product Tax is Vendor-Collected or FoodPlug-Collected;
• the applicable tax collector and registration information;
• FoodPlug fees separately from Product Tax; and
• refunds or adjustments to the taxable base and Product Tax.

FoodPlug may generate a Vendor tax receipt as the Vendor's administrative agent where the Vendor is the legal collector. FoodPlug may generate its own tax receipt or required platform disclosure where FoodPlug is the legal collector.

10. Refunds, cancellations, and adjustments

When all or part of a taxable product amount is refunded, the related Product Tax must be adjusted proportionally or as required by law.

• For Vendor-Collected Product Tax, the Vendor remains legally responsible for the adjustment, which FoodPlug may administer through the payment flow.
• For FoodPlug-Collected Product Tax, FoodPlug makes the tax adjustment and accounts for it in FoodPlug's return.
• For an external payment received by a Vendor as FoodPlug's limited collection agent, the Vendor must return or credit the authorized amount to the Customer and FoodPlug will adjust the Vendor collection balance and tax records.

A Vendor must not record a tax refund unless the Customer was actually refunded or credited as required.

11. Reliance, corrections, and recovery

FoodPlug may rely in good faith on Vendor statements where applicable law permits. A false statement includes a misleading omission.

FoodPlug may verify registration information, inspect transaction and audit records, request supporting documents, correct tax treatment, issue or correct receipts, adjust balances, withhold affected payouts, and notify tax authorities where required.

The Vendor is responsible for tax, interest, penalties, costs, and reasonable losses caused by its false, incomplete, misleading, expired, or late information; unauthorized collection or retention of Product Tax; failure to account for FoodPlug-Collected Product Tax; or interference with a required correction, except to the extent caused by FoodPlug's error or misconduct.

Nothing in this section limits liability allocated by mandatory law or any statutory safe-harbour rule available to FoodPlug.

12. Historical records and changes

Each Order must retain an immutable snapshot of:

• Vendor registration status;
• product tax classification;
• place of supply;
• tax collector;
• taxable base, rate, and amount;
• payment method and transaction origin;
• receipt version;
• applicable policy and tax-rule version; and
• refunds, corrections, and remittance status.

A later change to Vendor status, product configuration, or this Schedule does not silently rewrite an earlier Order. FoodPlug may make a documented correction where the original treatment was legally incorrect.

FoodPlug may update this Schedule prospectively for changes in law, guidance, product scope, or payment operations. FoodPlug will give additional notice and request renewed acceptance where required.

13. Contact

FoodPlug E-Services Inc.
19572 Fraser Way, Pitt Meadows, BC V3Y 0A9, Canada
Email: hello@myfoodplug.ca
Subject: Product Tax