A medical doctor residing in the U.S. who is registered for GST purposes would, at the request of insurance companies, interview and physically examine a patient in Ontario in an office usually provided by it or other interested parties and then, in the doctor’s home office, review medical documentation, and dictate and edit the report to the insurance company. Billing and other office duties also were performed in the home office. The doctor also, at the request of lawyers for victims of motor vehicle accidents, and slips and falls, would examine and interview the patient in a rented office room in Ontario, and prepare in the home office a report regarding the patient’s diagnosis, restrictions and limitations, and recommendations for treatment. Are the charges for these independent medical evaluations (IMEs) exempt from the GST/HST?
After noting that the IMEs supplied by the doctor before March 21, 2013 were exempt health supplies under s. 5, CRA stated, respecting supplies made after that date:
Section 1.2 of Part II of Schedule V has been added and provides that … a supply that is not a “qualifying health care supply” is … not exempt under any provision in Part II. …
…Specifically, paragraph (d) of the definition of qualifying health care supply includes supplies made for the purpose of assisting an individual (other than financially) in coping with an injury, illness, disorder or disability. This would include services provided directly to the individual to cope with the limitations or effects of an injury.
Supplies of medical examinations, reports and certificates that are made solely for other purposes, such as assisting a third party (e.g. insurance company or lawyer)… would be deemed not to be included in Part II of Schedule V and would be taxable for GST/HST purposes.