Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 133853a
Business Number: […]
Dear [Client]:
Subject: GST/HST INTERPRETATION
Supplies of a lift chair
We are writing further to our letter dated [mm/dd/yyyy], […], in which we provided a ruling on the tax status of supplies of […][the Product]. This letter provides additional information to our letter of [mm/dd/yyyy].
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
We understand that:
1) […](the Corporation) is registered for GST/HST […].
2) […][Corporate information and history].
3) The Corporation sells lift chairs and lift seats.
4) [The Product], about which our original letter in 2011 was written, was sold by the Corporation. […][Product history].
5) The Product was built for use by people who can no longer get up unassisted due to insufficient upper or lower body strength.
6) The Product was a seat lift chair that incorporated patented lift technology […].
7) The user was able to activate the lifting feature by pushing a lever situated on the arm of the chair.
INTERPRETATION REQUESTED
You […][asked for] information on the tax status of supplies of lift chairs and lift seats.
INTERPRETATION GIVEN
We are pleased to provide the following interpretation of the relevant provisions of the ETA to assist you in determining the tax status of your supplies.
Generally, all supplies of property and services made in Canada are taxable unless an exemption from the GST/HST applies. Taxable supplies are supplies made in the course of a commercial activity and may be taxable at the rate of 0% (zero-rated supplies), 5%, 13%, or 15% on the value of the consideration for the supply depending on the province in which the supply is made. Exempt supplies are not subject to the GST/HST and are listed in Schedule V. Zero-rated supplies are listed in Schedule VI.
Part II of Schedule VI contains provisions that zero-rate supplies of a range of medical and assistive devices.
Section 1.1 of Part II of Schedule VI requires that for the purposes of zero-rating the supply of any medical or assistive device listed in Part II of Schedule VI, other than in section 33 of Part II of Schedule VI (Footnote 1) , the medical or assistive device must be designed for human use or for assisting an individual with a disability or impairment.
Section 1.2 of Part II of Schedule VI provides that a cosmetic service supply and any supply of property or service that is in respect of a cosmetic service supply, that is not made for medical or reconstructive purposes, is not zero-rated under Part II of Schedule VI. A “cosmetic service supply” is defined in section 1 of Part II of Schedule V to mean, “a supply of property or a service that is made for cosmetic purposes and not for medical or reconstructive purposes”.
The sale or lease of a lift chair is zero-rated under section 14.1 of Part II of Schedule VI if it meets the following conditions:
* the lift chair has all the features of a chair;
* the lift chair is specially designed for use by an individual with a disability;
* the lift chair is supplied on the written order of a specified professional for use by a consumer named in the order.
When all three conditions are met, the sale or lease of the lift chair is zero-rated, regardless of where the lift chair is sold. For example, when all the conditions are met, a lift chair sold in a pharmacy or in a general furniture store is zero-rated. More information on these three conditions is available in the GST/HST Info Sheet GI-133, Application of the GST/HST to Lift Chairs available on the CRA web site. The Info Sheet also contains information on the application of the GST/HST to the sale or lease of specially designed parts, accessories and attachments for lift chairs, and services relating to installing, maintaining, restoring, repairing or modifying lift chairs.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the interpretation given in this letter is not a ruling and does not bind the CRA with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 306-807-5296. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
John Ware
Health Care Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
FOOTNOTES
1 Section 33 of Part II of Schedule VI zero-rates a supply of an animal that is or is to be specially trained to assist an individual with a disability or impairment with a problem arising from the disability or impairment, or a supply of a service of training an individual to use the animal, if the supply is made to or by an organization that is operated for the purpose of supplying such specially trained animals to individuals with the disability or impairment.
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