Bill C-69, which received Royal Assent on June 20, 2024, contains various amendments to implement the federal government’s 2024 Budget. In this blog, we discuss a small but important amendment: supplies of certain face masks, respirators and face shields are no longer classified as zero-rated supplies!
Background – Zero-Rated Supplies
Section 165 of the Excise Tax Act (the “ETA”) generally imposes the GST/HST on recipients of taxable supplies made in Canada. Zero-rated supplies are a subset of taxable supplies which are taxed at the rate of 0%. Common examples of zero-rated supplies include basic groceries, prescription medications, and some medical devices.