29 January 2001 GST/HST Interpretation 33580 - Tax Status of Chelation Therapy Supplied by a Medical Practitioner

Dear XXXXX:

Thank you for your electronic message of November 23, 2000, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to chelation therapy services supplied by a medical practitioner in the province of XXXXX.

Interpretation Requested

Chelation therapy is a treatment service provided by a medical practitioner that involves a chemical known as ethylenediamine tetra acetic acid ("EDTA") being dripped intravenously into a patient's bloodstream. According to a XXXXX XXXXX XXXXX, chelation therapy is said to remove plaque from, and reverse hardening of, the arteries. The XXXXX to determine if chelation therapy is a viable treatment for certain forms of heart disease.

According to the College of Physicians and Surgeons of XXXXX (the "College"), to date there is no reliable scientific evidence to support EDTA as being effective in treating hardening of the arteries. Currently, the use of EDTA, i.e., chelation therapy, is licensed only for treating people with heavy metal poisoning.

Chelation therapy is not an insured service for purposes of the XXXXX health insurance plan. Furthermore, chelation therapy is not sanctioned by any physician licensing body in Canada and it remains an unproven treatment for hardening of the arteries. The College does not consider chelation therapy to be a consultative or diagnostic service, nor does it consider chelation therapy to be a health care service because no reliable scientific evidence exists to support the therapy as being an effective treatment for hardening of the arteries.

XXXXX[.]

Interpretation Given

The term "health care service" is not defined in the Excise Tax Act (the "ETA"). For purposes of the ETA, services that help maintain physical and mental health, prevent and protect against disease, or diagnose or treat an injury, illness or disability of an individual are exempt health care services when the services are performed by regulated health care practitioners who are entitled to provide the services in question.

Since the responsibility for the provision of health care services lies with the provincial and territorial governments, the meaning of the term "health care service" for purposes of the ETA is further restricted to those services recognized as health care by the provincial and territorial ministries of health as well as by the health care practitioners themselves as endorsed by their respective regulatory bodies, such as the provincial Colleges of Physicians and Surgeons.

Based on the information provided, chelation therapy provided for a purpose other than heavy metal poisoning is not recognized as a health care service for purposes of the XXXXX health insurance plan, nor by the College of Physicians and Surgeons in XXXXX. Accordingly, chelation therapy for a purpose other than heavy metal poisoning is not considered to be a health care service for purposes of the ETA and thus section 5 of Part II of Schedule V to the ETA is not applicable to the supply of chelation therapy by a medical practitioner.

The supply of chelation therapy for a purpose other than a recognized health care service that is endorsed by the provincial College of Physicians and Surgeons is a taxable supply that is subject to the GST at the rate of 7% or where the supply is made in a participating province, the HST at the rate of 15%.

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