Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
XXXXX
XXXXX
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XXXXX
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 118382
Business Number: XXXXX
Attention: XXXXX XXXXX
July 27, 2010
Dear XXXXX:
Subject:
GST/HST RULING
Sales of XXXXX
Thank you for your letter of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the sales of XXXXX made by XXXXX. We apologize for the delay in our response.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
Statement of Facts
We understand the following:
• XXXXX.
• XXXXX are instruments used for diagnosis. They are probes mainly used to detect breast cancer in conjunction with isotopes that are injected into the body. They are comprised of XXXXX and various models of probes and cables.
• XXXXX are sutures of different materials that are used for internal and external surgical closures.
• XXXXX are sold to hospitals for their use on patients.
Ruling Requested
You would like to know if the sales of XXXXX by XXXXX are zero-rated.
Ruling Given
Based on the facts set out above, we rule that the sales of XXXXX by XXXXX are taxable supplies pursuant to section 165, and are not zero-rated.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
The general rule in section 165 is that all supplies of goods and services made in Canada are subject to the GST/HST. There are exceptions for medical devices that are specifically identified in Part II of Schedule VI as being zero-rated; i.e., the tax applies at the rate of 0%. If a medical device is not included in Part II of Schedule VI, then the supply of the medical device falls under the general rule. There is no provision in Part II of Schedule VI that would apply to the supply of XXXXX, and therefore the supply of these products falls under the general rule in section 165.
XXXXX.
Yours truly,
John Ware
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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