Sales And Excise Tax Measures - March 22, 2016

Health Measures

The Budget proposes to add insulin pens, insulin pen needles and intermittent urinary catheters to the list of zero-rated medical devices. Zero-rated supplies means that suppliers do not charge purchasers GST/HST on these medical devices but are entitled to claim input tax credits to recover the GST/HST paid on inputs in relation to these supplies. These measures will apply to supplies made after Budget Day and, in the case of insulin pens and insulin pen needles, supplies made on or prior to Budget Day unless the supplier charged, collected or remitted GST/HST in respect of the supply by the supplier.

The Budget proposes to clarify that the GST/HST generally applies to supplies of purely cosmetic procedures provided by all suppliers, including registered charities. A cosmetic procedure will, however, continue to be exempt if it is required for medical or reconstructive purposes or paid for by a provincial health insurance plan. This measure will