22 November 2007 GST/HST Interpretation 95574 - Application of the GST/HST to Cemetery Products and Services - Supply of Interment Rights

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:

Thank you for your XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the importation into Canada of XXXXX frames.

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Effective January 1, 2008, the rate of the GST will be reduced from 6% to 5% and the rate of the HST from 14% to 13%. The new rates will apply to supplies for which the GST/HST is paid on or after January 1, 2008, without having become payable before that date. Specific transitional rules will apply to certain supplies, for example, real property. For more information on the transitional rules for the reduction of the GST/HST rate, please refer to GST/HST Notice 226, Proposed GST/HST Rate Reduction in 2008 on the CRA Web site at www.cra-arc.gc.ca/E/pub/gi/notice226/README.html.

Statement of Facts

We understand that XXXXX is importing XXXXX frames for supply to XXXXX for their use in dispensing prescription spectacles against a medical prescription. The frames are exclusively designed to be parts of prescription eyeglasses and incorporate all of the following design elements:

•   A lens retention system which facilitates installation, removal and replacement of corrective lenses after selection of frame by a consumer.

•   Frame markings that indicate

(a) Frame size

(b) Temple length

(c) Manufacturer or vendor

(d) Model and colour

Ruling Requested

You would like confirmation that the imported XXXXX frames are non-taxable for GST/HST purposes pursuant to section 213 of the ETA and section 6 of Schedule VII to the ETA.

Ruling Given

Based on the facts set out above, we rule that the XXXXX frames imported by XXXXX are non-taxable for GST/HST purposes pursuant to section 213 of the ETA and section 6 of Schedule VII to the ETA.

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

Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213 of the ETA. Importations of goods relieved of tax under section 213 of the ETA are set out in Schedule VII to the ETA.

Section 6 of Schedule VII to the ETA provides for the non-taxable importation of medical and assistive devices that are described and zero-rated under Part II of Schedule VI to the ETA.

The XXXXX frames imported by XXXXX meet the necessary conditions to be zero-rated when supplied pursuant to section 32 of Part II of Schedule VI to the ETA as a part, accessory or attachment that is specially designed for a property described in Part II of Schedule VI to the ETA. The imported frames therefore meet the conditions to be non-taxable for GST/HST purposes under section 213 of the ETA and section 6 of Schedule VII to the ETA.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-8812.

Yours truly,

Jeff Frobel
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

2007/10/31 — RITS 95667 — Tour Packages