Therapists no longer need to collect GST/HST on services, easing tax obligations for many providers
As of June 20, the Canada Revenue Agency (CRA) no longer requires certain psychotherapists and counselling therapists to collect GST/HST on their services.
This change aims to ensure that all service providers have the necessary information to determine their tax obligations and take steps such as closing their GST/HST accounts if applicable.
This update applies to providers outside Quebec. Those located in Quebec should contact Revenu Quebec for relevant information regarding psychotherapy or counselling therapy services.
Psychotherapists and counselling therapists may no longer need to charge GST/HST if they meet the following criteria:
-
Licensed with a provincial body that regulates psychotherapy services (regulated in Ontario) or counselling therapy services (regulated in New Brunswick, Nova Scotia, and Prince Edward Island).
-
Operating in a province without a regulatory body but holding equivalent qualifications required in a regulated province.
-
Providing services within the scope of practice defined by the profession in the regulated province.
For additional information on what constitutes an exempt service, refer to the CRA's notices on Exempt services – psychotherapy or Exempt services – counselling therapy.
Although these notices initially referred to a proposed amendment, the amendment has now become law, aligning with GST/HST rules as of June 20.
