To tax or not to tax?

[edKENdance]

That is the question. Seems to be a bit of a grey area around these parts. Not sure if the laws vary across the country. New frames with prescription lenses are not taxed. New purchase of prescription lenses only are not taxed. Prescription frame only to be used for a prescription but client does not have prescription filled at that time? A prescription purchase with a frame that has a magnetic clip-on is not taxed so is a replacement clip-on for that frame supposed to be taxed? How about a customized clip-on purchase for a frame at the time the frame and lenses are purchased? Replacement lenses for the clip-ons?

[Golfnorth]

That is the question. Seems to be a bit of a grey area around these parts. Not sure if the laws vary across the country. New frames with prescription lenses are not taxed. New purchase of prescription lenses only are not taxed. Prescription frame only to be used for a prescription but client does not have prescription filled at that time? A prescription purchase with a frame that has a magnetic clip-on is not taxed so is a replacement clip-on for that frame supposed to be taxed? How about a customized clip-on purchase for a frame at the time the frame and lenses are purchased? Replacement lenses for the clip-ons?

This is how I would handle the above scenarios.
Prescription frame only-NO TAX
Prescription frame with clip-on-NO TAX
Custom Clip-on-TAX on clip-on only
Replacement lenses for clip-ons-TAX
Replacement clip-on for magnetic clip frame-TAX

About 15 years or so agents from Revenue Canada were auditing opticians in Ontario for lost tax revenue on the sale of Magnetic clip-on frames.
I spoke to Paula at Aspex at length about this at the time and they did eventually explain to Revenue Canada that the clip-on is free with the purchase of
the frame so there was no tax to collect. I heard that some opticians were facing tax bills of up to $10,000 before all this got straightened out.
I hope this helps you.

Regards,
Golfnorth

[edKENdance]

That does help! Thanks

[rbaker]

You might also want to check with your local taxing authority.

[edKENdance]

You might also want to check with your local taxing authority.

http://www.gov.mb.ca/finance/taxation/bulletins/034.pdf

I've never seen this before. Google search is all about the wording.

[profilo]

As a custom made clip on manufacturer we have been told to not charged taxe to retails store since the clip-on is an accessories that can't be use by itself and the clip in linked to a optical frame and Rx lens, wich are taxe at 0% .

This is the link in french about taxe interpretation ...about rx glasses .. article 6 and 7 are for the clip-on.

http://www2.publicationsduquebec.gou...76T2R3BULB.pdf