CRA is allowing immediate application of the new non-supply rules for human ova or embryos but won’t process rebate claims until passed
A proposed GST/HST amendment would zero-rate the supply of an ovum – which would have the effect of rendering the importation of an ovum as a non‑taxable importation. A further amendment will add the importation of in vitro embryos to the list of non-taxable importations. “As a result, the importation of in vitro embryos would no longer be subject to tax” – so that implicitly CRA is treating supplies of in vitro embryos under current law as supplies of goods rather than humans.
Respecting the application of the ovum amendment, for example, CRA indicates:
[S]uppliers can stop charging GST/HST on supplies of human ova in accordance with the proposed amendment as of March 20, 2019. … [C]onsistent with its standard practice, the CRA is administering this measure on the basis of the proposed amendment [and similarly re embryos]
… However, the CRA cannot pay a rebate for an amount paid in error as or on account of tax until the proposed amendment becomes law.
A supplier who has charged or collected GST/HST on human ova supplied after March 19, 2019, must include that amount in the calculation of their net tax on their GST/HST return … .
CRA goes on to indicate that ova or in vitro embryos provided at a fertility clinic are considered to be part of a single exempt supply of an institutional health care service.