Medical and Assistive Devices Intended Exclusively for Healthcare Institutions, External Suppliers and Professionals
Generally, medical and assistive devices intended exclusively for healthcare institutions, external suppliers and professionals are subject to GST and QST.
- examining tables
- highly specialized medical equipment
- surgical instruments
The GST and the QST also apply to the following:
- catheters for taking blood samples
- latex gloves
- test tubes
Healthcare institutions and professionals
Suppliers generally collect GST and QST on medical equipment and various articles, regardless of the type of institution (such as a hospital, medical or dental clinic or residential centre for seniors) or category of professional (such as a physician or dentist) that acquires them.
Although all instruments used by dentists (drills, extracting forceps, stomatoscopes, dental chairs, etc.) are subject to GST and QST, property that directly concerns patients (such as artificial teeth and orthodontic appliances) are zero-rated if a dentist buys them for or sells them to a patient.
Materials and articles (such as wire, rings, bonding agents, brackets, ligatures, screws, abutments and other expansion or tightening devices) used to make this property are also subject to GST and QST. Dentist-orthodontists and dental laboratories that are registered for the GST and the QST are entitled to ITCs and ITRs with respect to purchases of these materials and articles.
Tax rebate for non-profit organizations
Non-profit organizations that operate a healthcare institution otherwise than for profit are entitled to a rebate, or partial refund, equal to 50% of the GST and 50% of the QST they paid on medical and assistive devices. For more information, see Canada Revenue Agency guide RC4034, GST/HST Public Service Bodies' Rebate.