Psychotherapy and Counselling HST Exemption

Do you offer psychotherapy or counselling services? If so, you might be exempt from collecting GST/HST on your services. As of June 20th, 2024, certain psychotherapists and counselling therapists are now exempt from collecting GST/HST on their services.

 

This blog post, “Psychotherapy and Counselling HST Exemption” will break down what you need to know.

 

Eligibility

If you provide psychotherapy or counselling therapy services, you might not need to charge GST/HST anymore if:

 

• You are licensed by a provincial body that regulates these services. Note: Ontario regulates psychotherapy services.
• You work in a province without a regulatory body but have qualifications that meet the standards of a regulated province
• Your services fall within the professional scope of practice in that regulated province.

 

Next Steps

If you’re not registered for GST/HST, this change won’t have a significant impact on you. You can continue offering non-taxable services.

 

If you are currently registered for GST/HST, there are some important changes to consider such as:

  • This change goes into effect as of June 20th, 2024, you must no longer collect GST/HST on eligible services.
  • If all of your services are exempt, you can close your GST/HST account. Here is a link to help you: Open or manage an account – Close – Canada.ca
  • If you provided a service before June 20th, 2024, and collect the payment after you will need to collect GST/HST on this service.
  • If all of your services are exempt, you will no longer be able to claim ITCs as of June 20th, 2024.

In Conclusion

These changes aim to simplify the tax process for psychotherapists and counselling therapists by exempting eligible services from GST/HST. It’s important to review your registration status and understand how these updates affect your practice. If you have any questions or need further assistance, feel free to reach out to us via our Contact Us form and we will get back to you right away.

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Psychotherapy and Counselling HST Exemption