File: 11865-6
C.N.: 2691
Dear Mr. 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 XXXXX laser surgery. We understand that this surgical procedure is performed by XXXXX[.] Section 5 of Part II of Schedule V 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 XXXXX is an exempt supply under the provision quoted above. It is also the Department's position that XXXXX is not considered cosmetic surgery for the purposes of section 5 and hence supplies of XXXXX will always be GST exempt. Separate facility charges which may be billed to patients 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 would inform your members of Revenue Canada's position regarding the GST status of XXXXX[.] 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.
Yours truly,
J.A. Venne
Director
Special Sectors
GST Rulings and Interpretations
Policy and Legislation Branch
| c.c.: |
L. Dixon
E. Vermes
XXXXX |
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