9 July 1998 GST/HST Interpretation HQR55953082 - Parts for Orthodontic Appliances

                                                                        Revenue Canada
GST/HST Rulings and Interpretations
9th Floor , Tower "C" Place Vanier
25 McArthur Road
Ottawa, Ontario
XXXXX                                                                                 K1A 0L5

Dear Sirs:

Thank you for your letter of September 25, 1996 (with attachments) concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to your operations. We apologize for the delay in responding to your request.

Interpretation Requested

You have requested information regarding the GST/HST status of the supply of the items listed in the Product Catalogue sent with your letter of September 25, 1996. Specifically, which goods are zero rated as specially designed parts for orthodontic appliances.

Interpretation Given

We understand orthodontic appliances to be any of a number of devices which are designed to be applied to correct or prevent irregularities or abnormalities of the teeth or to correct or prevent a wide variety of abnormalities of the relations of teeth to surrounding parts such as jaw, face, facial muscles, joints or other associated parts. Orthodontic appliances may be fabricated or assembled prior to being installed or they may be assembled directly in the patient's mouth. They can be either affixed or removable.

After reviewing the policy in this area, the Department reaffirms its position that:

(a) parts for orthodontic appliances imported into or purchased in Canada prior to their actual use as parts will be treated as not being identifiable as specially designed parts and will therefore be subject to 7% GST or 15% HST in the participacting provinces, and

(b) Input Tax Credits will be available to qualifying registered dentists or orthodontist or suppliers who meet the requirements for claiming ITCs (such as documentary requirements).

This position continues to greatly simplify the administration of the GST/HST and is supported by both t XXXXX[.]

The foregoing represents our general views with respect to the subject matter of your letter. Proposed or future amendments to the legislation may result in changes to our interpretation. These comments are not rulings and, in accordance with the guidelines set out in GST Memoranda Series 1.4, do not bind the Department with respect to a particular situation. For your convenience, find enclosed a copy of GST Memoranda Series (1.4).

If you need additional information, please do not hesitate to contact me at (613) 952-9590.

Yours truly,

Kenneth G. Syer
Senior Rulings Officer
Municipalities and Health Care
GST/HST Rulings and Interpretations

File:                                         11860-2