At the end of May 2015, the Department of Finance published a Notice of Ways and Means Motion to Amend the Excise Tax Act (“ETA”). The motion proposes to add a new part, Part II.1 “Other Products”, to Schedule VI of the ETA, which covers zero-rated items. The part will read as follows:
1. A supply of a product that is marketed exclusively for feminine hygiene purposes and is a sanitary napkin, tampon, sanitary belt, menstrual cup or other similar product.
The effect of this amendment will be to zero-rate, for GST/HST purposes, any supply of such products made on or after July 1, 2015.
In addition, the Canada Revenue Agency has released some questions and answers to provide further guidance.