Ask A Professional: Will I need to pay taxes on custom foot orthotics and orthopedic shoes?
My doctor prescribed custom foot orthotics and orthopedic shoes. Will I need to pay tax on these?
By: Deny Dallaire, B.Sc., C.Ped (C)
Certified Pedorthist (Canada) with Thera-Ped Moncton
This is a common question among our clients. Canada Customs & Revenue Agency supplied the following information to us: An item that is “zero rated” is an item on which no tax is applied.
Regarding custom-made foot orthotics: These devices have a zero tax rating if they are “specially constructed for an individual who has a crippled or deformed foot or ankle.” Therefore, no sales tax is applied to the sale of prescribed custom-made foot orthotics.
Regarding footwear, things are slightly different. CCRA provides a zero tax rating to any footwear that has been prescribed by a medical practitioner and that is “specially designed for an individual with a crippled or deformed foot or other similar disability.”
Therefore, the sale of mass-produced, over-the-counter footwear is not zero-rated. However, when this footwear is prescribed and permanently designed or modified to accommodate a physical deformity or disability, the footwear has a zero tax rating. In short, only once a prescribed shoe has been permanently modified, does the sale of this shoe receive a zero-rating.
A good rule of thumb: Ask the person serving you if taxes will apply to the sale of your prescribed shoes and foot orthotics.
Here are a couple of other points of interest as well: (1) Inserting or securing a pair of custom-made foot orthotics into any footwear does not constitute a modification. Therefore, even if prescribed, this DOES NOT give a zero tax rating to the sale of the shoes. (2) When a shoe accommodates custom foot orthotics this DOES NOT necessarily qualify the shoe as orthopedic. You would need to check with your health insurance provider or with your Pedorthist to see if the footwear you are purchasing has all of the necessary qualifications to classify it as orthopedic
By: Deny Dallaire, B.Sc., C.Ped (C)
Certified Pedorthist (Canada) with Thera-Ped Moncton
This is a common question among our clients. Canada Customs & Revenue Agency supplied the following information to us: An item that is “zero rated” is an item on which no tax is applied.
Regarding custom-made foot orthotics: These devices have a zero tax rating if they are “specially constructed for an individual who has a crippled or deformed foot or ankle.” Therefore, no sales tax is applied to the sale of prescribed custom-made foot orthotics.
Regarding footwear, things are slightly different. CCRA provides a zero tax rating to any footwear that has been prescribed by a medical practitioner and that is “specially designed for an individual with a crippled or deformed foot or other similar disability.”
Therefore, the sale of mass-produced, over-the-counter footwear is not zero-rated. However, when this footwear is prescribed and permanently designed or modified to accommodate a physical deformity or disability, the footwear has a zero tax rating. In short, only once a prescribed shoe has been permanently modified, does the sale of this shoe receive a zero-rating.
A good rule of thumb: Ask the person serving you if taxes will apply to the sale of your prescribed shoes and foot orthotics.
Here are a couple of other points of interest as well: (1) Inserting or securing a pair of custom-made foot orthotics into any footwear does not constitute a modification. Therefore, even if prescribed, this DOES NOT give a zero tax rating to the sale of the shoes. (2) When a shoe accommodates custom foot orthotics this DOES NOT necessarily qualify the shoe as orthopedic. You would need to check with your health insurance provider or with your Pedorthist to see if the footwear you are purchasing has all of the necessary qualifications to classify it as orthopedic
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