Historically, the Canada Revenue Agency (CRA) has had an
administrative policy allowing orthodontists to claim input tax
credits ("ITCs") at a rate of 35 per cent of the GST/HST
incurred on their purchases in certain circumstances.
Dr. Brian Hurd Dentistry Professional Corporation v. The
Queen
In the case of Dr. Brian Hurd Dentistry Professional
Corporation v. The Queen (2017 TCC 142), the issue at hand was when
providing an orthodontic treatment that included both the appliance
and the service for a single fee, whether Dr. Hurd was providing a
single exempt supply of orthodontic treatment or multiple supplies
consisting of a zero-rated supply of an orthodontic appliance and
the accompanying exempt supply of an orthodontic service, each with
its own GST/HST status. That determination was relevant for the
purpose of claiming ITCs as input tax credits are generally only
available when the property or service on which GST/HST was payable
was acquired for use,
