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Tax Tip - Clarifying the new GST/HST exemption for psychotherapy and counselling therapy services

OTTAWA, ON, July 15, 2024 /CNW/ - As of June 20, 2024, certain psychotherapists and counselling therapists are no longer required to collect the GST/HST on their services. The Canada Revenue Agency wants to ensure that all providers of these types of services have the information they need to determine their tax situation and take any next steps, such as closing their GST/HST account.

Please note that this information only applies if you are located outside of Quebec. If you are located in Quebec and provide psychotherapy or counselling therapy services, please contact Revenu Quebec for more information.

If you provide psychotherapy or counselling therapy services, you may no longer need to charge the GST/HST if you:

  • are licensed with a provincial body responsible for the regulation of psychotherapy services (regulated only in Ontario) or counselling therapy services (regulated only in New Brunswick, Nova Scotia, and Prince Edward Island); or

  • operate in province with no regulatory body but have the equivalent qualifications required to meet the licensing requirements in a regulated province; and

  • provide services that are within the scope of practice of the profession in that regulated province (see Exempt services - psychotherapy or Exempt services – counselling therapy for more information)

Additional information, including details on what the CRA considers to be an exempt service, can be found in Proposed Amendment – Exemption for Psychotherapy Services and Proposed Amendment – Exemption for Counselling Therapy Services. While these notices refer to a proposed amendment, the amendment is now law and the guidance in the notices is consistent with the GST/HST rules as of June 20, 2024.

Next steps

Once you confirm that your services are GST/HST exempt, you must stop charging the GST/HST on your services. If all of your services are exempt, you may close your GST/HST account with the CRA, online or by mail. If only some of your services are exempt, you must keep your account open and continue to charge the GST/HST on any non-exempt services and goods. For more information on closing your account, please see Open or manage an account – Close.

Contacts 

Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca

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SOURCE Canada Revenue Agency

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View original content: http://www.newswire.ca/en/releases/archive/July2024/15/c5268.html