News and Insights

CRA Issues Notice on Proposed GST/HST Treatment of Supplies of Naloxone

Tax Development May 02, 2017

The CRA has issued GST/HST Notice 305, “Questions and Answers on the Proposed GST/HST Treatment of Supplies of Naloxone”, in relation to the proposed amendment to Part I of Schedule VI of the Excise Tax Act (“ETA”) to zero-rate naloxone.  Naloxone is used to treat an opioid overdose, and prior to March 22, 2016, was only available as a prescription drug.  Since then, it has been made available for purchase without a prescription when it is indicated for use in the emergency treatment of opioid overdose.   As a result, in the most recent federal budget, the government proposed zero-rating naloxone, effective March 23, 2017, by including it in the ETA list of non-prescription drugs used to treat life-threatening conditions. 

The notice includes general questions and answers relating to the new tax treatment of naloxone, including what to do when tax is charged in error, as well as transitional measures between March 21, 2016 and March 22, 2017.

Information on the 2017 federal budget can be found here: