News and Insights

CRA GST/HST Notice No. 248, “Application of the GST/HST to Supplies of In Vitro Diagnostic Test Kits”

Tax Development Dec 24, 2009

The Canada Revenue Agency has issued this notice to clarify its position with respect to the GST/HST status of in vitro diagnostic test kits designed for laboratory use.  The CRA is currently reviewing the impact of the decision in Centre Hospitalier Le Gardeur et al v. The Queen [2007] TCC 425 that certain in vitro diagnostic test kits are zero-rated pursuant to paragraph 2(a) of Part I of Schedule VI of the Excise Tax Act.   

In the interim, the CRA has issued this administrative position, indicating that the supply of an in vitro diagnostic test kit will be zero-rated where it is used in the diagnosis of a disease in humans and it contains one or more of the following substances:  monoclonal and polyclonal antibodies; blood and blood derivatives; snake venom; and micro-organisms that are not antibiotics.  A supplier that has collected and remitted GST/HST on supplies that qualify for zero-rating under this administrative position may refund or credit GST/HST to its customers.  Alternatively, customers may apply for a rebate from the CRA for tax paid in error.