CRA GST/HST Info Sheets re: Lift Chairs and Appraisals Performed for Insurance Purposes

The Canada Revenue Agency has issued two new info sheets outlining the application of GST/HST to the separate issues of lift chairs and appraisals of damage caused to property performed for insurance purposes.

GST/HST Info Sheet GI-133, “Application of the GST/HST to Lift Chairs” explains the criteria that must be met in order for the supply of a lift chair to qualify as a zero-rated supply (i.e. taxable at a rate of 0%).  There are three primary criteria:

• the lift chair has all the features of a chair;
• the lift chair is specially designed for use by an individual with a disability; and
• the lift chair is supplied on the written order of a specified professional for use by a consumer named in the order.

The info sheet provides details and definitions on the various components included in the criteria noted above, as well as examples of scenarios in which a lift chair, specially designed parts, accessories and attachments, and services relating to the lift chair meet the required criteria for the zero-rating provisions.

GST/HST Info Sheet GI-134, “Insurance – Appraisals of Damage Caused to Property” outlines the criteria required to have an appraisal fee qualify as an exempt financial service.  GST/HST does not apply to appraisal services rendered in situations where all of the following criteria are met:

• the service is provided to an insurer or an adjuster;
• the service is in respect of either damaged property or property loss;
• the supplier of a service in respect of damaged property inspects the property in order to provide an appraisal of the damage;
• the supplier of the service in respect of property loss inspects the last-known place where the property was situated before the loss, and provides an appraisal of the value of the property; and
• the service is not provided by an accountant, actuary, lawyer or notary in the course of a professional practice.

Several examples are provided citing situations that might occur in which an appraisal service is provided, with conclusions explaining whether all of the criteria have been met to consider the service an exempt supply.