13 March 2000 GST/HST Ruling 26963 - Application of the GST/HST to Products Prescribed by a Medical Practitioner

Dear Sir:

Thank you for your letter of July 28, 1999 (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transaction(s) described below.

Statement of Facts

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

1. XXXXX[.]

2. The two products for which you have requested zero-rated status are an XXXXX[.]

3. As per the information on the XXXXX XXXXX[.]

4. The XXXXX[.]

5. Some customers buy one or both of these products with a prescription from a medical practitioner, but a prescription is not needed to buy one or both of these products.

Ruling Requested

XXXXX are GST exempt when supplied under prescription from a medical practitioner.

Ruling Given

Based on the facts set out above, we rule that the XXXXX are taxable at 7%, or 15% if supplied in a participating province.

Explanation

Only the supply of a hospital bed to a health care facility or on the written order of a medical practitioner for use by an incapacitated individual named in the order are zero-rated under section 4 of Part II of Schedule VI and section 32 of Part II of Schedule VI to the Excise Tax Act. As per the descriptions and photos of the products listed above, we do not consider them to be hospital beds or hospital bed mattresses. These beds with adjustable mattresses that can be purchased by individuals in stores open to the public and are designed primarily to provide increased comfort are not zero-rated. The mattresses are not specifically made to be a replacement mattress for hospital beds. There are no provisions in the Excise Tax Act to zero-rate these products.

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 (613) 952-9592.

Yours truly,

Michel Guay
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate