File: 11860-2
XXXXX C.N.: 3121
XXXXX August 20, 1996
Dear XXXXX
This is in response to your fax tranmission of July 5, 1996, in which you requested confirmation on the application of the Goods and Services Tax (GST) to a supply of a product called XXXXX. Your request was spurred by a tax consultant who believes the supply should be zero-rated.
Facts
1. Your firm supplies a product known as a XXXXX[.]
2. XXXXX.
3. Although the chair is supported on casters and is therefore mobile, control of mobility does not rest with the occupant of the chair. Control of mobility rests with the person pushing it from behind. Contrast this with the traditional wheelchair, the mobility of which can be controlled by the occupant. In this respect, the chair is no more an aid to locomotion than a gurney or a hospital bed.
Ruling Requested
You would like to confirm the GST status of the supply of the XXXXX[.]
Analysis
Section 14 of Part II of Schedule VI to the Excise Tax Act (ETA) provides a zero-rated status for the supply of the following:
"The supply of an invalid chair, commode chair, walker, wheelchair lift or similar aid to locomotion, with or without wheels, including motive power and wheel assemblies therefore, that is specially designed for use by a disabled individual."
Standard wheelchairs are designed with large wheels which can be gripped by the occupant. Control of the wheels provides the occupant with control of the direction and velocity of the movement of the chair.
The XXXXX is designed with casters at the foot of all four legs instead of the large wheels which are standard features in a traditional wheelchair design. This decreases the value of the chair as a mobility aid for disabled persons. The chair mobility is best controlled by an attendant pushing the chair from behind. The XXXXX does not qualify as an "invalid chair ... or similar aid to locomotion" for the purpose of section 14 quoted above. The principal purpose of the chair is, as the name suggests, as a recliner for patients.
Ruling
The supply of the XXXXX is subject to the GST at 7%.
This ruling is given subject to the general limitations and qualifications outlined in the GST Memoranda Series 1.4. We are bound by this ruling provided that none of the above issues are presently under audit, objection or appeal, there are no relevant changes in the future to the Excise Tax Act and provided that you have described all necessary facts and transactions for which you requested a ruling.
If you would like to discuss this matter further, please do not hesitate to contact me at (613) 952-9590.
J.A. Venne
Director
Special Sectors
GST Rulings and Interpretations
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