14 April 2000 GST/HST Ruling 25851 - Application of GST/HST to

Dear XXXXX

Thank you for your facsimile message of January 22, 2000 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supply of the services described below.

Statement of Facts

Our understanding of the facts according to the information provided in your letter is as follows:

1. XXXXX[.]

2. XXXXX[.]

3. The proprietorship is not a small supplier for the purpose of the Excise Tax Act (the "ETA").

4. The proprietorship presently has a contract with XXXXX to offer the following services:

a) provide professional occupational therapy recommendations to the XXXXX XXXXX based on the review of special equipment applications referred to the project authority and assessment XXXXX[;]

b) refer and consult with other health professionals as warranted;

c) coordinate the work of community occupational therapists who assess XXXXX and provide assessment reports XXXXX[;]

d) brief health care team members and make recommendations with regard to XXXXX[;]

e) develop and maintain professional relationships with community health service agencies by regular contact with health professionals in the field;

f) provide information sessions on equipment/health concerns upon request of the project authority and/or their appointee to the XXXXX accessing appropriate community health professionals, if necessary;

g) provide written records of occupational therapy assessments, follow-up recommendations and reports of service for XXXXX case file;

h) follow up assessments, as required, within the geographical area of the XXXXX [t]o ensure that planned interventions are working adequately and safely;

i) ensure efficient use of XXXXX; and

j) provide input towards the establishment/revision of national and regional guidelines.

Ruling Requested

The services supplied by the proprietorship to the XXXXX Canada are exempt of GST/HST.

Ruling Given

Based on the facts set out above, we rule that the services supplied by the proprietorship to the XXXXX Canada are subject to GST/HST at the rate of 7%.

Explanation

The services of a provincially regulated practitioner of occupational therapy are exempt of GST under paragraph 7(i) of Part II of Schedule V to the ETA when the service is rendered to an individual. The services provided by the proprietorship, XXXXX are not being rendered to an individual. As a consequence of these services being rendered to the XXXXX XXXXX, these services are taxable.

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 ETA, or to the Canada Customs and Revenue Agency interpretative policy; and that you have fully described all necessary facts and transactions 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 (613) 952-9592.

Yours truly,

Michel Guay
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division