13 April 1999 GST/HST Ruling HQR0001685 - Geriatric Seating -

GST/HST Rulings and Interpretations Directorate Place Vanier, Tower C, 10th Floor 25 McArthur Avenue Ottawa ON K1A 0L5XXXXXAttention: XXXXX

Case: HQR0001685April 13, 1999

Subject:

GST/HST APPLICATION RULING Geriatric Seating - XXXXX

Dear XXXXX

This is in reply to your facsimile of February 18, 1999, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the import of geriatric seating. Our understanding of the facts is as follows.

Statement of Facts

Your client, XXXXX imports the following products to sell to homes for seniors, hospitals, and nursing homes. These products are designed to be used by patients and residents.

Pedal Chair by XXXXX[.] The features of this chair include adjustable seat and arm rests and an integrated seat tilt. Although this chair is supported on casters and is therefore mobile, control of mobility does not rest with the occupant of the chair. Control of mobility rests with the person pushing it from behind. However, this chair can be ordered as a wheelchair that provides self-propelled mobility for the user. Available options for this chair are:

•   wheelchair wheels with anti-tip casters, and footplates;

•   positioning cushions;

•   tray table; and

•   user-operated brakes and seat tilt control.

XXXXX Gliders and Straight Chairs

Both the gliders XXXXX and the straight chair XXXXX XXXXX have a fixed base, i.e., they do not have casters for movement. The gliders are equipped with a care-giver operated brake.

XXXXX - Accessories

XXXXX - Neckrest Pillow

XXXXX - Shoulder Bolsters

XXXXX - Short Wing Covers for removable wing

XXXXX - Long Wing Covers for removable wing

XXXXX - Neckrest Pillow with two lateral support bolsters

XXXXX - Upper Slide Pads for Elite Chairs

XXXXX - Lower Side Pads for Elite Chairs

XXXXX - Upper Side Pads for Basic and Pedal Chairs

XXXXX - Lower Side Pads for Basic and Pedal Chairs

XXXXX - Side Pads for Glider and Straight Chairs

XXXXX - Fleece Back Pad

XXXXX - Fleece Armrest covers

XXXXX - Fleece Seat Pad

XXXXX - Back Pad with cover

XXXXX - Seat Pad with cover

XXXXX - Round Bolster

XXXXX - Side Reduction Pads

XXXXX - Wedged Bolster

XXXXX - Clear Tray

XXXXX - Supper Tray

XXXXX - Strap-on Wood Laminate Tray

XXXXX - Slide-on Wood Laminate Tray

Anti-tip bars

XXXXX - Pole and Holder

XXXXX - Padded Seat Belt

XXXXX - Unpadded Seat Belt

XXXXX - Unpadded Seat Belt (Centre Buckle)

XXXXX - Padded Thigh Belt

XXXXX - Short Fixed Footrest

XXXXX - Standard Fixed Footrest

XXXXX - Extended Fixed Footrest

XXXXX - Footpad for F1, F2, F3 footrests

XXXXX - Extended Footpad

XXXXX - Full Extended Footpad

XXXXX - Flipdown Footrest - single footplate

XXXXX - Sole Pad for Single Flipdown Footrest

XXXXX - Flipdown Footrest with Split Footplate

XXXXX - Calf Pad for Flipdown Footrest

XXXXX - Sole Pad for Split Flipdown Footrest

XXXXX - Contracture Sling

Mag Wheels - 20" and 23"

Multi-Directional Locking Caster

Cable and Trigger Release Gas Cylinder

Instructional Video

XXXXX Padding Upgrade

Fully Padded Pedal Chair with optional XXXXX

Tray and optional XXXXX

Swing Away Footrests

The Basic Chair Line by XXXXX[.] There are three models available:

•   Basic Tilt Chair

•   Basic Recliner

•   Basic Tilt Recliner

Although these chairs are supported on casters and are therefore mobile, control of mobility does not rest with the occupant of the chair. Control of mobility rests with the person pushing it from behind. However, each of these chairs can be ordered as a wheelchair that provides self-propelled mobility for the user. A complete line of accessories such as tray tables, positioning cushions, and protective padding is available.

XXXXX Alzheimer's Chair

This chair, XXXXX tilts and reclines. This chair is designed for people with severe agitation and involuntary movement. Although the chair is supported on casters and is therefore mobile, control of mobility does not rest with the occupant of the chair. Control of mobility rests with the person pushing it from behind.

XXXXX Re-Positioning Chairs

There are two models: the XXXXX. They assist individuals with poor upper torso muscle tone, may be used for individuals with severe agitation and involuntary movement, and are designed to ease the burden on caregivers. Although these chairs are supported on casters and are therefore mobile, control of mobility does not rest with the occupant of the chair. Control of mobility rests with the person pushing it from behind.

XXXXX hairs by XXXXX[.] There are three models: the Tilt Chair, the Semi-Recliner, and the Full-Recliner. These have different positioning capabilities allowing caregivers to select the appropriate chair for their patients and residents. Although these chairs are supported on casters and are therefore mobile, control of mobility does not rest with the occupant of the chair. Control of mobility rests with the person pushing it from behind. However, each of these chairs can be ordered as a wheelchair that provides self-propelled mobility for the user. Other items that can be ordered are:

•   contracture sling for use on the tilt and semi-recliner, this non-corrective footrest allows people with knee contractures to correctly position their hips and pelvis;

•   wheelchair wheels - all three models can be ordered with full size, mag style wheelchair wheels, hand rims, brakes, anti-tip bars, and two attachment positions;

•   tray table; and

•   gliders for dementia and Alzheimer's patients which have a fixed base.

Hospital Bed Caster XXXXX[.] These casters are for use with hospital beds, patient transfer systems, and medical equipment and come with locks, and are the XXXXX Models, XXXXX Models.

XXXXX Seating Accessories - Wheels

Step Pedal - used on the seat tilt of the Tilt Chairs and on the back recline of the Full XXXXX and Semi Recliner Chairs.

Front Casters - These are standard 5" locking front casters for XXXXX wheeled chairs, and non-locking 8" front casters for wheelchair models.

Multi-Directional Locking Caster - these are available on the Tilt Chairs and Semi and XXXXX Full Recliner Chairs XXXXX Stepping on the butterfly pedal coverts the 8" rear wheels into casters, step again to brake both wheels.

Wheelchair Wheels - these 24" wheels with hand rims and locks are available for XXXXX Tilt XXXXX Chairs and Full and Semi Recliner Chairs.

8" Rear Wheels - these are locking rear wheels available on the XXXXX Tilt Chairs and Semi XXXXX and Full Recliner Chairs.

XXXXX Chair Accessories

XXXXX - Wing Frame 17" High

XXXXX Wing Frame 6" High

XXXXX Standard Footrest

XXXXX Sort Wing Pillow XXXXX Short Wing Pillow XXXXX - Seat Side Pillow (Pair)

XXXXX Contracture Sling

XXXXX Padded Contracture Sling

XXXXX - Standard Sling

XXXXX - Sling c/w Padded Sides

XXXXX - Foot Pad Cushion

XXXXX Seat Pad c/w Cover

XXXXX - Extra Cover

Ruling Requested

You would like a ruling on whether any of the items listed above are zero-rated for GST/HST purposes, pursuant to Part II of Schedule VI to the Excise Tax Act (the "ETA").

Ruling Given

Wheelchairs

The following items are zero-rated pursuant to section 14 of Part II of Schedule VI to the ETA when they are imported as a fully assembled wheelchair that provides self-propelled mobility for the user:

•   Pedal Chair XXXXX[.]

•   The Basic Chair Line XXXXX Elite Chairs XXXXX[.] The accompanying parts, accessories, and attachments will have the same zero-rated status as the wheelchair, provided that they are included as part of a single supply of a wheelchair product that is supplied for a single consideration:

•   tray table;

•   anti-tip casters and footplates;

•   user-operated brakes

•   seat tilt control,

•   positioning cushions; and

•   protective padding.

Wheelchair accessories

The following items are zero-rated pursuant to section 32 of Part II of Schedule VI to the ETA as a specially designed part, accessory, or attachment for wheelchairs described in section 14 of that Part:

•   Pedal Chair XXXXX

-    wheelchair wheels with anti-tip casters and footplates

-    user-operated brakes

•   XXXXX Seating Accessories

-    Mag Wheels 20" and 23"

•   Elite Chairs XXXXX

-    wheelchair wheels with hand rims, brakes, and anti-tip bars

•   XXXXX Seating Accessories

-    Wheels

-    Non-locking 8" front casters for wheelchairs

-    Wheelchair wheels 24" with hand rims and locks

Hospital Bed Casters

Hospital bed casters XXXXX are zero-rated pursuant to section 32 of Part II of Schedule VI to the ETA as a specially designed part, accessory, or attachment for hospital beds described in section 4 of that Part.

There are no zero-rating provisions that apply to the other items listed under the Statement of Facts and therefore these items are taxable at 7% or 15%, depending on the place of supply as explained below.

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%. Goods that are delivered or made available in a participating province are subject to the HST, 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 transactions for which you requested a ruling.

Explanation

Section 14 of Part II of Schedule VI to the ETA provides a zero-rated status for the following:

"A supply of a chair, commode chair, walker, wheelchair lift or similar aid to locomotion with or without wheels, including motive power and wheel assemblies therefor, that is specially designed for use by an individual with a disability."

It is the Department's position that the control of the locomotion must rest with the occupant of the chair, and the sole purpose of the chair is to provide self-propelled mobility to the user. Standard wheelchairs are designed with large wheels which can be gripped by the occupant. Control of the wheels provides the occupant with control of the direction and velocity of the movement of the chair. A chair with casters that allow the chair to be rolled but which do not give the occupant control of the movement is not considered to be an aid to locomotion for the purposes of section 14 quoted above.

When the chairs listed in the ruling given above, i.e., Pedal Chair, Basic Chairs, and Elite Chairs, are equipped with casters at the foot of all four legs instead of the large wheels which are standard features in a traditional wheelchair design, this decreases the value of the chair as an aid to mobility for disabled persons. The chair mobility in this case is controlled by an attendant pushing the chair from behind. Therefore, these chairs would not qualify as an "aid to locomotion" for the purpose of section 14 of Part II of Schedule VI to the ETA. Similarly, the Alzheimer's Chair and Re-Positioning Chairs which are supplied only with casters, and the Gliders and Straight Chairs XXXXX which have a fixed base, are not zero-rated devices as described in section 14.

Section 32 of Part II of Schedule VI to the ETA provides a zero-rated status for the supply of a part, accessory or an attachment that is specially designed for zero-rated medical devices (which includes wheelchairs and hospital beds). Therefore, when the wheelchair wheels and user-operated brakes and the hospital bed casters are imported as individual items, since they are specially designed parts, accessories or attachments for wheelchairs and hospital beds, the supply of these items is zero-rated under section 32.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-6761.

Yours truly,

Susan Eastman
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division

c.c.:

P. Bertrand O. Newell S. Eastman

Legislative References:	sections 4, 14, and 32 of Part II of Schedule VI to the ETA
NCS Subject Code(s):	R-11860-2