15 October 1998 GST/HST Interpretation HQR0000912 - Clarification of the Tax Status Regarding the Services of

                                                                        GST/HST Rulings and Interpretations
 Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Road
Vanier, Ontario
XXXXX                                                                                 K1A 0L5

Dear XXXXX

Thank you for your letter of September 12, 1997 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to services provided by XXXXX[.]

Interpretation Requested

You would like clarification of the tax status of nutritional consulting services which may be provided by XXXXX some of whom are XXXXX[.]

Interpretation Given

Based on the information provided, nutritional consulting services provided by XXXXX are subject to the GST/HST.

Explanation

The supply of a dietetic service when made by a practitioner of dietetics where the service is rendered to an individual, to a public sector body (which includes a government, non-profit organization, a charity, a municipality, a school or hospital authority, a public college or a university), or to the operator of a health care facility is exempt of the GST/HST pursuant to subsection 7.1 of Part II of Schedule V to the Excise Tax Act (ETA).

A practitioner is a person who is licensed or otherwise certified to practice the profession (in this case, dietetics) in the province where the service is supplied or where the person is not required to be licensed or otherwise certified to practice the profession in that province, has the qualifications equivalent to those necessary to be so licensed or otherwise certified in another province. As XXXXX do not practice the profession of dietetics this exempting provision does not apply to the services provided by XXXXX[.]

There are no other provisions in the ETA to exempt XXXXX by XXXXX. Consequently, XXXXX provided by individuals acting in their capacity as XXXXX are subject to GST/HST.

On April 1, 1997, the harmonized sales tax (HST) replaced the goods and services tax (GST) and the provincial sales tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15%, to the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Department with respect to a particular situation.

For your convenience, find enclosed a copy of section 1.4 of Chapter 1 of the GST/HST Memoranda Series.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 613-9264.

Yours truly,

Lance G. Dixon, MHA., CHE
Municipalities & Health Care Services Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate