13 July 1998 GST/HST Ruling HQR0001236 - GST Status of the Supply of the Service of Coating - Prescription Eyeglass Lenses

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

Dear XXXXX

This is further to our meeting of June 24, 1998, in which we discussed the GST status of the above-noted supply.

Statement of Facts

Our understanding of the facts, the transaction(s), and the purpose of the transaction(s) is as follows: Your firm supplies the service of coating prescription eyeglass lenses with UV and anti-glare coatings.

Ruling Requested

You would like to confirm the GST treatment of this supply.

Ruling Given

Based on the facts set out above, we rule that the supply of the service of coating a prescription eyeglass lens with a UV or anti-glare coating or any similar type of coating is zero-rated pursuant to section 34 of Part II of Schedule VI to the Excise Tax Act.

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.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 952-9590.

Yours truly,

Kenneth G. Syer
Senior Rulings Officer
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate