News and Insights

Canada Revenue Agency Issues Notices on Proposed Healthcare Changes

Tax Development Jun 01, 2019

The Canada Revenue Agency (CRA) has issued publications concerning the proposed zero-rating provision for human ova and in vitro embryos, as well as the exemption for multidisciplinary health care services announced in the 2019 Federal Budget. Each of these proposals is expected to apply to supplies made after March 19, 2019.

The publication GST/HST Notice 311, “Proposed Exemption of Multidisciplinary Health Care Services,” outlines that all services supplied by multidisciplinary teams of licensed health care professionals are exempt, where 90% or more of the services provided are exempt from GST/HST. The notice provides various examples illustrating the application of the exemption to bundled health care service packages which may include both exempt and taxable health care services.

 The GST/HST Notice 312, “Proposed GST/HST Treatment of Supplies of Human Ova and In vitro Embryos,” comments on the proposal to zero-rate human ova as a drug and biological, and to add in vitro embryos to the lists of non-taxable importations and property. In addition, this notice includes questions and answers concerning these proposed changes.

 The GST/HST Notice 313, “Proposed Change for the Purpose of Zero-rating Certain Foot Care Devices,” summarizes the proposal to add licensed chiropodists and podiatrists to the list of medical practitioners eligible to prescribe qualifying foot care devices on a zero-rated basis. This notice also contains questions and answers about these proposed changes.