25 April 2001 GST/HST Ruling 35060 - Tax Status of the

Dear XXXXX:

Thank you for your letter of February 20, 2001 (with enclosures), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies of the XXXXX[.]

Statement of Facts

Our understanding of the facts, the transactions, and the purpose of the transactions is as follows:

1) XXXXX[.]

2) The XXXXX is intended for use by seniors, individuals suffering from arthritis, injuries and other physical challenges, individuals with back or leg problems, such as those recovering from hip replacement and knee surgery and expectant mothers.

3) XXXXX[.]

4) The XXXXX has been recommended by doctors and health care professionals and is recognized by the XXXXX.

5) XXXXX[.]

Ruling Requested

Is the XXXXX a medical device that is relieved of the GST/HST?

Ruling Given

Based on the facts set out above, we rule that the XXXXX is subject to the 7% GST and to the 15% HST, when supplied in the participating provinces.

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 (ETA), or to our interpretative policy; and that you have fully described all necessary facts and transactions for which you requested a ruling.

Explanation

The XXXXX would not be subject to the GST/HST if it fell under any of the zero-rating provisions in Part II of Schedule VI of the ETA.

Section 14 of Part II of Schedule VI zero-rates the supply of a chair, commode chair, walker, wheelchair lift or similar aid to locomotion, with or without wheels, including motive power and wheel assemblies therefor, that is specially designed for use by an individual with a disability. In our view, this provision does not apply to the XXXXX[.]

XXXXX is not an aid to locomotion that is similar in class to the items described in section 14 of Part II of Schedule VI, such as a chair, a wheelchair, a walker, a wheelchair lift, etc.

The XXXXX is not designed specifically for use by individuals with a disability as it is also intended to address the needs of individuals who may be mobility challenged but who do not have a disability, such as persons suffering from injuries, those recovering from knee or hip surgery, seniors and expectant mothers.

We consider the XXXXX to be similar in nature to grab bars or similar steadying devices. These items are subject to the GST/HST, as they do not fall under any zero-rating provision in the ETA.

As no zero-rating provision applies to the XXXXX supplies of this item will be subject to the GST/HST at a rate of 7% and 15% respectively.

We are enclosing the example of the XXXXX and the video that you included with your ruling request. Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9590.

Yours truly,

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