CRA provides guidance on a GST/HST exemption for respite care services
ETA Sched V, Pt. IV, s. 3 exempts
A supply of a service of providing care and supervision to an individual with limited physical or mental capacity for self-supervision and self-care due to an infirmity or disability, if the service is rendered principally at an establishment of the supplier.
Points made by CRA include:
- Such an exempt service can include the provision of lodging.
- The single supply doctrine can assimilate the provision of lunch, snacks, art supplies, and transportation to and from different activities in the exempt supply of the care.
- The fact that an individual requires assistance with meal preparation and basic activities of daily living alone is not indicative of the individual having limited physical or mental capacity for self-supervision and self-care.
- The factors taken into account in determining whether the care is provided at facilities of the supplier include:
who has authority over making operational decisions in the establishment
who has control of day-to-day operations of the establishment
who has presence in the establishment
the types of activities and routine carried on in the establishment
Neal Armstrong. Summary of GST/HST Memorandum 21-3 "Respite Care Services" January 2019 under ETA Sched V, Pt. IV, s. 3.