28 May 1998 GST/HST Interpretation HQR0001138 - Service of Applying a Protective Film to Eyeglass Lenses

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

Dear XXXXX

This is further to our recent conversations on the above-noted topic and the interpretation issued to you by this office dated December 10, 1997 (HQR0000859), as it pertains to the supply of the service of applying a protective film to lenses for corrective eyewear and the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST).

We have reviewed the GST/HST status of the supply of a service of applying a tint or protective film to an eyeglass lens which already incorporates corrective properties which make it a specially designed part for the purposes of section 32 of Part II of Schedule VI to the ETA. Our revised position is that the supply is zero-rated under section 34 of the same Part. This amends the letter of December 10, 1997, as it pertains to that matter. We apologize if this change had caused any inconvenience.

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. Future 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. 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,

Ken Syer
Senior Rulings Officer
Municipalities and Health Care Services Unit
PSB's and Governments Division
GST/HST Rulings and Interpretations Directorate