Canada Tax Court Issues Decision Clarifying GST Treatment of Nurse Staffing Services

The Canadian Tax Court April 3 issued Decision No. 2023 TCC 39, clarifying the GST treatment of a nursing care service provider. The taxpayer contracted for the staffing of registered nurses for long-term care facilities and nursing homes, and didn’t collect GST based on the belief that the nursing services were tax exempt. The Canadian Minister of National Revenue reassessed the taxpayer, and determined that the services constituted taxable placement services. On appeal, the Tax Court disagreed, and held that the services qualified as GST-exempt nursing services, because: 1) the taxpayer provided the services of charge nurses with significant responsibility ...