Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 210839
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
COVID19 Testing ServicesThank you for your [correspondence] of June 25, 2020, concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to supplies of COVID19 testing services made by […][X].
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the following:
1. [X] is a registered charity within the meaning assigned to that expression by subsection 248(1) of the Income Tax Act.
2. [X] has been designated as a hospital authority for purposes of the GST/HST. [X] is also a public institution, as defined in subsection 123(1), as it is a registered charity that is a hospital authority.
3. A local laboratory company has received a large number of requests from employers […] to conduct COVID19 testing on workers who are working in unique settings […].
4. The laboratory company does not yet have the equipment or test kits required to conduct COVID19 testing and wishes to contract with [X] to have the testing conducted […].
RULING REQUESTED
You would like to know if [X] is required to collect and remit GST/HST on supplies of COVID19 testing services.
RULING GIVEN
Based on the facts set out above, we rule that supplies of COVID19 testing services made by [X] are exempt pursuant to section 2 of Part VI of Schedule V.
EXPLANATION
Generally, all supplies of property and services made in Canada are taxable unless an exemption from the GST/HST applies. Taxable supplies are supplies made in the course of a commercial activity and may be taxable at the rate of 0% (zero-rated supplies), 5%, 13%, or 15% on the value of the consideration for the supply depending on the province in which the supply is made. Exempt supplies are not subject to the GST/HST and are included in Schedule V. Zero-rated supplies are included in Schedule VI.
Section 2 of Part VI of Schedule V exempts a supply of personal property or a service made by a public institution, unless the supply is specifically excluded under paragraphs (a) to (q) of that section. There are no exclusions in paragraphs (a) to (q) that would exclude the supply of COVID19 testing services made by [X]. As [X] is a public institution, supplies of COVID19 testing services made by [X] are exempt supplies pursuant to section 2 of Part VI of Schedule V.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly 613-670-7932. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Art Blommesteijn
Health Sectors Unit
Public Service Body and Governments Division
Excise and GST/HST Rulings Directorate
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