13 March 2000 GST/HST Interpretation 7943/HQR0001549 - Supply of Braille Plates for Use With Elevators

Dear XXXXX

This in reply to your facsimile message of January 5, 1999, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supply of braille plates for use with elevators. I apologize for the delay in responding to your letter.

Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency (the "CCRA").

Interpretation Requested

You are inquiring as to whether the supply of braille plates that are specially designed for the use of disabled individuals are zero-rated pursuant to either section 8 or section 30 of Part II of Schedule VI to the Excise Tax Act (the "Act"). The braille plates are imported by an elevator company for installation in its elevators which are for public use.

Interpretation Given

Section 8 of Part II of Schedule VI to the Act provides zero-rated status to a supply of a selector control device that is specially designed to enable an individual with a disability to select, energize, or control household, industrial, or office equipment. An example of such a device is a remote switching mechanism for household appliances. Braille plates are designed for use with elevators are installed on the elevator call station beside the corresponding call button and on the car buck of the elevator outside the doors to indicate the floor number. The braille plates themselves are not selector control devices. Consequently, the braille plates are not zero-rated devices as described in section 8 of Part II of Schedule VI to the Act.

Pursuant to section 30 of Part II of Schedule VI, the supply of any article that is specially designed for the use of blind individuals, such as braille plates, as well as other tangible personal property such as books and documents transcribed into braille, are zero-rated only when supplied to or by the Canadian National Institute for the Blind (CNIB) or a similar bona fide institution or association for blind individuals. Such articles sold directly to a consumer are zero-rated if they are supplied to that individual on the order or certificate of a medical practitioner.

The phrase "any other bona fide institution or association for blind individuals" means organizations that are similar to the XXXXX. As such, only those entities that are registered charities or non-profit organizations whose main objective is to provide services to blind individuals or to act as a consultation or resource agency to the helping professions, government departments and private industry, are bona fide institutions or associations. Commercial businesses are not considered to be bona fide institutions or associations for the purposes of section 30 of Part II of Schedule VI to the Act and supplies of braille products and other articles specially designed for blind individuals are not zero-rated under this provision when supplied to or by these recipients.

Since the supply of the braille plates in question do not meet the zero-rating provisions of section 8 and section 30 of Part II of Schedule VI to the Act, the importation of the braille plates by an elevator company is subject to the GST/HST 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, and services performed in a participating province, to the extent 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. Proposed amendments to the 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 CCRA 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 (613) 952-6761.

Yours truly,

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