File: 11865-6
C.N.: 2424
Dear XXXXX
This is to advise you of our recent policy decision regarding the application of the Goods and Services Tax (GST) to the supply of Photo Refractive Keratotomy surgery, a type of laser eye surgery. We understand that this surgery is performed by XXXXX.
Section 5 of Part II of Schedule VI to the Excise Tax Act provides an exempt GST status for supply of the following:
"A supply made by a medical practitioner of a consultative, diagnostic, treatment or other health care service rendered to an individual (other than a surgical or dental service that is performed for cosmetic purposes and not for medical or reconstructive purposes)."
It is the Department's position that the supply of Photo Refractive Keratotomy is an exempt supply under the provision quoted above. It is also the Department's position that Photo Refractive Keratotomy is not a type of cosmetic surgery for the purposes of section 5 and hence supplies of Photo Refractive Keratotomy will always be GST exempt. Separate facility charges which may be levied by clinics where the service is supplied are also GST exempt. This position is effective with the implementation of the GST on January 1, 1991.
Please note that suppliers of GST exempt services are not considered to be engaged in a commercial activity for GST purposes and are not required to be registered for purposes of the tax nor are they entitled to claim input tax credits (ITCs).
It would be appreciated if you could inform XXXXX of Revenue Canada's position regarding the GST status of Photo Refractive Keratotomy. If you would like to discuss this matter further, please contact Ms. E. Vermes, Manager, Health Care, Goods and Services or Mr. Lance Dixon, Policy Officer, at 952-9264.
J.A. Venne
Director
Special Sectors
GST Rulings and Interpretations
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