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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 101369
Experience:  Lawyer
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In Canada, are dentists required to pay GST/PST on the price

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In Canada, are dentists required to pay GST/PST on the price they pay for donnated human bone graft particles that they use in reconcructive surgery on their human patients? Based on which section of the tax laws?
Did the company you bought them from charge you?
Customer: replied 4 years ago.

We bring the grafts in from USA and Korea and distribute them to dentists in Canada. All the other companies I checked that provide this type of graft do not charge taxes when selling them to dentists but I would like to base my decision on a section of the tax law and not on what everyone else is doing.

Have you called the CRA and asked?
Customer: replied 4 years ago.

No but from past experience in grey areas like this, when you ask, the answer is collect the tax! Problem is, we have been following the industy on this and not collecting but would like something better to base our position on.

I understand.

I called as well as was told it's taxable.

My own research could not find any reason to say it's not taxable and I believe that is what the woman who took my call found as well.

It's a very unusual expense as you likely realize.

I suggest you make a request to the CRA in writing and ask for a written response from them to verify the situation firmly one way or the other.

I wish I had a more specific answer for you but given my research and the information I received from my call this is as certain as I can be but I agree there is no very obvious answer and so I think this merits something in writing from the CRA so you will be positive going forward.
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