Question:
Hi, the supplier of my daughter’s ostomy supplies recently started charging HST after a CRA audit. They said they were told they need to charge it. However, my insurance company is now refusing to reimburse the HST. Who’s right?
Answer:
Thank you for your question. Here’s what I found on the official Canadian government website regarding HST and ostomy supplies:
According to the Canada Revenue Agency (CRA):
Prosthesis/devices (Sch. VI, Part II, s 25)
A supply of a medical or surgical prosthesis, or an ileostomy, colostomy, or urinary appliance—or a similar article designed to be worn by an individual—is zero-rated (meaning no HST should be applied).
Articles or materials for use with prosthesis/devices (Sch. VI, Part II, s 26)
A supply of an article or material (not including a cosmetic) for use by a user of, and necessary for, the proper application and maintenance of an ostomy appliance (e.g., bags, tubes, connectors, etc.) is also zero-rated.
Based on this, it appears that ostomy appliances and their related supplies should not be subject to HST. Therefore, it seems your insurance company may be correct in denying reimbursement for the tax if it was incorrectly applied.
That said, I am not an HST expert. For clarification, you may want to contact the CRA directly:
GST/HST Inquiries: 1-800-959-5525
I hope this information helps.
Answered by
Andrea Manson (BSN, NSWOC, NCA, Retired Nurse and Ostomy Specialist)
Medical and Lifestyle Advisory Team Lead, Ostomy Canada Society
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