21 July 2003 GST/HST Ruling 43615 - Applicability of as a Zero-rated Medical Device

Dear XXXXX:

Thank you for your letter XXXXX, with attachments, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) XXXXX[.] Your request was transferred from the Saskatoon GST/HST Rulings Centre.

Statement of Facts

Based on the information in your letter as well as information provided on your Internet site XXXXX we understand that XXXXX operates as described below.

XXXXX

Ruling Requested

You are requesting that the XXXXX qualify as a zero-rated medical device under the provisions of section 6 of Part II of Schedule VI that states, "A supply of a mechanical percussor for postural drainage is zero-rated".

Ruling Given

Based on the facts set out above, we rule that the supply of XXXXX is a taxable supply at the rate of 7% or 15 % if supplied in the harmonized provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador.

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

Explanation

Section 6 of Part II of Schedule VI is specific; that is, the zero-rating provision applies to a supply of a mechanical percussor for postural drainage.

A mechanical percussor is an externally powered device/aid that delivers short sharp blows to the chest wall of a person in order to loosen secretions and allow for their drainage. Percussion, including mechanical percussion, is generally used as an aid when employing the postural drainage technique.

'Postural drainage' is a technique that enables a person whose lungs are clogged with secretions to drain them. The person lies in such a way that the secretions drain by gravity into the trachea where they are coughed up.

XXXXX In the event that we concluded that XXXXX was not zero-rated, XXXXX the GST/HST Rulings Centre XXXXX agreed that we would bring the decision to the attention of the Department of Finance as tax policy is within their scope of responsibility. We have therefore provided a copy of this letter to them for their consideration.

Should you have further questions or require clarification on the above matter, please contact me at (613) 954-4390.

Yours truly,

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