No GST/HST on AEDs and supplies

Summary#

This bill adds automated external defibrillators (AEDs), AED kits, and AED pads and accessories to the list of goods that are “zero-rated” under Canada’s Goods and Services Tax/Harmonized Sales Tax (GST/HST). Zero-rated means the tax rate is 0%, and sellers can still claim input tax credits on their costs (Excise Tax Act, Schedule VI). The goal is to lower the price of AED equipment at the point of sale by removing GST/HST.

• Removes GST/HST from AEDs, AED kits, and AED pads and accessories (Bill, Schedule VI amendment).
• Lowers the checkout price by the full GST/HST rate that would otherwise apply in each province/territory.
• Keeps the existing tax rules for sellers to claim input tax credits (Excise Tax Act, Schedule VI).
• Does not mandate AED installation or provide grants; it only changes tax treatment.
• Reduces federal (and HST-partner provincial) tax revenue; amount unknown. No fiscal note identified.

What it means for you#

• Households
  • Buying an AED for home use, or replacement pads and batteries, would no longer include GST/HST once in effect (Bill, Schedule VI amendment).
  • The savings equal the GST/HST rate in your province/territory. Data unavailable on average dollar savings.
• Workers and Volunteers
  • Workplaces, community centers, and sports facilities may face lower upfront and maintenance costs when they buy AEDs and replacement pads. The bill does not require employers or venues to install AEDs.
• Businesses
  • Retailers selling AEDs and related pads/accessories must stop charging GST/HST on these items and keep records showing they qualify as AED products (Bill, Schedule VI amendment).
  • GST/HST-registered buyers already able to claim input tax credits would see little change in net cost, but cash flow improves because tax is not paid upfront.
• Non-profits, Schools, and Local Governments
  • Organizations that do not receive full input tax credits (or receive only partial rebates) would see a clearer reduction in purchase price because GST/HST is removed at checkout.
  • Ongoing maintenance (replacement pads and certain accessories) is also zero-rated, which may lower operating costs (Bill, Schedule VI amendment).
• Governments and Tax Administrators
  • Canada Revenue Agency (CRA) would likely need to issue guidance on what counts as “pads or accessories designed for use with an AED” to avoid disputes. Data unavailable on timing.

Expenses#

• Estimated net cost: Data unavailable.

• Key points

  • No direct spending or appropriations in the bill; it changes tax status only (Bill, Schedule VI amendment).
  • Fiscal effect is foregone GST/HST revenue on sales of AEDs, AED kits, and AED pads/accessories. Data unavailable.
  • Applies under the federal GST/HST framework, including in HST-participating provinces. Data unavailable on federal–provincial shares.
  • No official fiscal note identified. Data unavailable.

Proponents' View#

• Removing GST/HST directly lowers the purchase price of AEDs and the ongoing cost of pads/accessories, which reduces cost barriers for schools, rinks, gyms, and community sites (Bill, Schedule VI amendment).
• Including pads and accessories matters because they require regular replacement; zero-rating lowers maintenance costs, not just the initial device (Bill, Schedule VI amendment).
• Zero-rating uses an established mechanism in Schedule VI, so administration is simpler than creating a new grant or rebate program (Excise Tax Act, Schedule VI).
• Schedule VI already zero-rates many essential health-related goods; adding AED items aligns tax treatment within the medical category (Excise Tax Act, Schedule VI).
• Sellers can still claim input tax credits, so supply chains are not penalized; only the final tax on the AED products is set to 0% (Excise Tax Act, Schedule VI).

Opponents' View#

• The change reduces federal (and HST provincial) tax revenue without a clear estimate of cost or evidence on how many new AEDs will be purchased. No fiscal note identified. Data unavailable.
• Benefits may be uneven: GST/HST-registered businesses already recover tax through input tax credits, so the net effect for them is small, while revenue loss is broad-based.
• The phrase “pads or accessories designed for use with an AED” may require detailed CRA guidance, risking disputes, audits, and compliance costs for retailers and importers (Bill, Schedule VI amendment).
• Zero-rating is a blunt tool; funds lost to tax expenditure could alternatively fund targeted AED placement programs in high-need locations. Impact depends on assumptions about buyer behavior. Data unavailable.
• Adding more zero-rated items can complicate the tax base and invite pressure to exempt other safety equipment, increasing long-term erosion risk. Data unavailable.