Psychotherapy and counselling services now tax-exempt in Canada – National
Certain psychotherapy And consulting services in Canada are now exempt from sales tax to make mental health care more affordable for Canadians.
THE Canada Revenue Agency said in a press release Monday that certain psychotherapists and counsellors are no longer required to collect the goods and services tax (GST) or the harmonized sales tax (HST) on their services.
THE tax exemption, which was proposed by the federal government in the fall economic statement in November, came into force on June 20 after receiving royal assent, the CRA said.
It applies to individuals who hold a license issued by a provincial body to provide psychotherapy or counselling services.
Professionals who work in a province without a regulatory body, but who have the equivalent qualifications required to meet the licensing requirements in a regulated province, are not required to collect GST/HST.
Services that fall within the scope of the profession’s practice in a regulated province — Ontario, New Brunswick, Nova Scotia and Prince Edward Island — are also exempt from sales tax.
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“Once you confirm that your services are exempt from GST/HST, you will need to stop charging GST/HST on your services,” the CRA said.
“If all of your services are exempt, you can close your GST/HST account with the CRA, online or by mail,” the agency said.
These new rules apply everywhere in Canada, except Quebec, which has its own tax requirements.
It expands the tax exemption for services provided by different types of health professionals, including dentists, optometrists, physiotherapists, chiropractors and midwives.
Health care services covered by provincial plans are also exempt from sales tax.
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