The Canada Revenue Agency (“CRA”) recently issued GST/HST Notice No. 286, Draft GST/HST Policy Statement, “Qualifying Health Care Supplies and the Application of Section 1.2 of Part II of Schedule V to the Excise Tax Act to the Supply of Medical Examinations, Reports and Certificates” which supersedes the September 2006 Policy Statement P-248, “The application of the GST/HST to the supply of an independent medical examination (“IME”) and to other independent assessments”.
This policy was drafted to establish the CRA’s position on the meaning of the term “qualifying health care supply”, as referred to in section 1.2 of Schedule V, Part II of the Excise Tax Act (“ETA”), which discusses exceptions to the GST/HST exemptions for health care services. A definition of “qualifying health care supply” has been added to section 1 of this part of the ETA.
The draft policy statement discusses that qualifying supplies include the supply of property or services made for the purpose of maintaining health and preventing disease, but do not include cosmetic services, which would be subject to GST/HST.