CRA rules that a long-term care facility does not supply home care services for HST purposes

An individual (X) in a long-term care facility in Ontario (the “Centre”) that was funded by an Ontario local health integration network, required additional care, which was provided by the Service Provider in the form of personal care, behaviour management, oral care and feeding.

ETA Sched, V, Pt. II, s. 13(c) indicated that the services of the Service Provider were exempted if they were provided by it in in addition to home care services rendered by a government-funded supplier – a requirement which was argued to be satisfied by the services of the Centre to X. In rejecting this submission and in connection with ruling that such services of the Service Provider were taxable, CRA stated:

While the supply made by the Centre may include elements that are home care services, the supply also includes accommodation, meals and nursing services. The supply made by the Centre is beyond the scope of the definition of “home care service”. Therefore, the supply rendered to [X] at the Centre is not a supply of publicly funded home care services.

Neal Armstrong. Summary of 4 May 2023 GST/HST Ruling 196193 under Sched, V, Pt. II, s. 13(c).