27 March 2006 GST/HST Interpretation 78821 - Precious Metals

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Dear XXXXX:

Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to massage therapy services.

All legislative references are to the Excise Tax Act (ETA) and the regulations therein, unless otherwise specified.

Rulings Requested

Do the exemptions in sections 5, 7 or 10 of Part II of Schedule V apply to massage therapy services?

XXXXX.

Rulings Given

Sections 5, 7 and 10 of Part II of Schedule V do not exempt massage therapy services provided by Registered Massage Therapists from the GST/HST.

These rulings are subject to the qualifications in GST/HST Memorandum 1.4, Goods and Services Tax Rulings. We are bound by these rulings provided that none of the above issues is currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Section 5 of Part II of Schedule V exempts a supply made by a medical practitioner of a consultative, diagnostic, treatment or other health care service rendered to an individual (other than a surgical or dental service that is performed for cosmetic purposes and not for medical or reconstructive purposes).

"Medical practitioner" is defined in section 1 of Part II of Schedule V as a person who is entitled under the laws of a province to practise the profession of medicine or dentistry. A Registered Massage Therapist is not a medical practitioner for purposes of the ETA.

Therefore, if a medical practitioner provides massage therapy services to an individual in the course of providing treatment to that individual, this service would be exempt of the GST/HST under section 5 of Part II of Schedule V. This exemption does not apply to services supplied by persons other than medical practitioners.

Section 7 of Part II of Schedule V provides exemptions from the GST/HST to the supply of an optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational or psychological service rendered to an individual when a practitioner provides the service. As you note in your letter, massage therapy services are not included under this section.

Section 1 of Part II of Schedule V defines a "practitioner", in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational or psychological services, as a person who practises the profession of one of these services and who is licensed or otherwise certified to practise that profession if required in the province where the service is supplied, or who has qualifications needed to be licensed or certified in another province, if this is not required in the particular province where the service is supplied. As Registered Massage Therapists are not included in this definition, these individuals are not practitioners for purposes of the ETA.

Accordingly, section 7 of Part II of Schedule V does not exempt supplies of massage therapy services by Registered Massage Therapists.

Your letter also referred to section 10 of Part II of Schedule V. Section 10 exempts a supply of a prescribed diagnostic, treatment or other health care service when made on the order of a medical practitioner or practitioner (as those terms are defined in this Part). You mentioned that this section has been interpreted to mean that where a physician or other health care practitioner "prescribes" a service from a Registered Massage Therapist, the service would be exempt from the GST/HST.

Please note that this exemption does not apply in these circumstances. For purposes of Part IX of the ETA and certain Schedules in this legislation, the term "prescribed" is defined in subsection 123(1) to mean the following:

a) in the case of a form or the manner of filing a form, authorized by the Minister,

b) in the case of the information to be given on a form, specified by the Minister,

c) in the case of the manner of making or filing an election, authorized by the Minister, and

d) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation (emphasis added).

The exemption in section 10 of Part II of Schedule V is limited to prescribed diagnostic, treatment or other health care services that are described in the Health Care Services (GST/HST) Regulations (Regulations) that were issued pursuant to this section.

For purposes of section 10, a prescribed health care service is a laboratory, radiological or other diagnostic service generally available in a health care facility, and includes the administration of drugs, biologicals or related preparations provided in conjunction with these diagnostic services. A diagnostic service is considered to be the detection and determination of the cause of a disease by means of a test or study procedure and the report of findings.

While there are many types of diagnostic services, the scope of the exemption is limited to laboratory and radiological diagnostic services, including serological tests and diagnostic imaging such as x-ray, CT scanning, MRI scanning, mammography, fluoroscopy, and ultrasound and other diagnostic services of the same kind as laboratory or radiological diagnostic services that are generally available in a health care facility.

Massage therapy services are not prescribed services for purposes of section 10, as they are not the type of services set out in the Regulations. Therefore, the exemption in section 10 does not apply to these services.

XXXXX.

XXXXX.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-9590.

Yours truly,

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

2006/02/13 — RITS 45733R — Review of GST/HST Ruling 45733 - Supplies of Books with CD-ROMs and/or Online Access in the Participating Provinces