July 27, 2024
***CRPO/CRA Clarification on HST Exemptions***
Further clarification has now been confirmed by both the CRA and CRPO with respect to the areas that have been open to interpretation and causing some confusion around what is HST-exempt and what is not.
The CRPO, as the body charged with clarifying the scope of practice, has confirmed with the CRA (and shared with us) the following elements within the scope of practice for RPs that are exempt from collecting HST.
Exempt Activities:
- Assessment and treatment of cognitive, emotional, or behavioral disturbances by psychotherapeutic means, delivered through a therapeutic relationship based primarily on verbal or non-verbal communication.
- Providing psychotherapy to clients, as well as services closely related or ancillary to the scope, such as providing clinical supervision to enable client care.
- Writing reports related to psychotherapy services provided to individuals.
- Providing services to individuals, couples, families, and groups, as long as each person is receiving psychotherapy services.
- Clinical supervision required by the College for the purposes of providing direct care.
The following guideline from CRA may be of value in helping interpret and define when seeking clarification of tax implications related to assessments, reports, and certificates.
We are all adapting, in real time, to the CRA’s implementation of Bill C-59. We are seeing that sometimes interpretations of services that seem clear to us may differ from others' views. There will likely be situations that arise that will remain unclear and open to interpretation. Recognizing that we cannot anticipate or capture all scenarios, we will always seek clarification and confirmation from authoritative sources – namely CRPO and CRA - and share this with our members as soon as the information is available.
Each member’s practice is unique, and specific circumstances may vary. For personalized advice, please consult your financial advisor or accountant.
July 15, 2024
***CRA Releases Guidelines on HST Exemption***
The Canada Revenue Agency (CRA) has just released the guidelines:
“Clarifying the new GST/HST exemption for psychotherapy and counselling therapy services”
In brief, the guidance is that as of June 20, 2024, psychotherapy and counselling therapy services provided by licensed professionals are exempt from HST, provided they are within the scope of practice of the professional’s regulatory body.
Each member’s practice is unique, and specific circumstances may vary. For personalized advice, please consult your financial advisor or accountant.
We value receiving your comments and questions to this topic, will continue to monitor closely, and will provide updates here, on this webpage.
Resources
CRA Guidelines on HST exemption:
"Clarifying the new GST/HST exemption for psychotherapy and counselling therapy services"
To contact CRA directly: 1-800-959-5525
Other Resources:
The following guideline from CRA may be of value if seeking clarification on tax implications related to assessments, reports, and certificates.
The following Canada Revenue Agency links provide information about the counselling therapy or psychotherapy services & practitioners who will be exempt from charging HST/GST:
- NOTICE335 Proposed Amendment - Exemption for Counselling Therapy Services
- NOTICE335 Modification proposée – Exonération pour les services de counseling thérapeutique
- NOTICE334 Proposed Amendment – Exemption for Psychotherapy Services
- NOTICE334 Modification proposée – Exonération pour les services de psychothérapie
November 21, 2023 was a momentous day!
In its fall economic statement, the federal government finally listened to the OAMHP – and countless other voices - and has committed to removing GST/HST from psychotherapeutic services!
Previous HST Advocacy Work
Support the Bill to remove the HST!
Update: February 22, 2023
Bill 61 - Making Psychotherapy Services Tax-Free Act
On February 21, 2023, NDP MPPs Jill Andrew and France Gélinas introduced Bill 61, Making Psychotherapy Services Tax-Free Act into the provincial legislature for its first reading.
To show support, we encourage you to sign the petition here. Please also read this page for help to contact your local MPP.
On February 10, 2023, NDP MPPs Jill Andrew (Toronto—St. Paul's) and France Gélinas (Nickel Belt) held a press conference to announce re-tabling of their co-sponsored bill: Make Psychotherapy Tax-Free Act, 2023.
They were joined by Maryann Istiloglu, OAMHP's Executive Director, and RPs Caroline Rosta and Ashley Miller.
The Bill’s aim: Remove the unfair tax treatment levied against Registered Psychotherapists who are the only regulated mental health professionals that have to charge their clients 13% in HST.
The two MPPs re-tabled the Private Members’ Bill on February 21, 2023. It was first tabled back in April 2022.
Talking points:
- An additional HST charge puts mental health care further out of reach of vulnerable Ontarians who need therapy. With the additional tax, psychotherapy is only available to a fortunate few who can afford to pay.
- Removal of the tax would expand the range of mental health care. Registered psychotherapists, in particular, have unique approaches to therapy which partners with the full spectrum of mental health care.
- Mental health professionals are trained to support different mental health needs, depending on a whole variety of factors. There is no one size fits all approach when it comes to assessing, diagnosing, treating and supporting mental health challenges.
- Without psychotherapy, Ontarians are not getting the full benefit of all forms of mental health care. We need psychotherapy to be fully represented in the mix.
More from the press conference
Watch the February 21, 2023 re-tabling of Bill 61: Making Psychotherapy Tax Free Act:
https://twitter.com/JILLSLASTWORD/status/1628145173426233344?s=20
Read the February 10, 2023 press release here: https://www.ontariondp.ca/news/mpps-andrew-and-g-linas-call-psychotherapy-services-be-tax-free-remove-13-hst
Watch the February 10, 2023 press conference video here: https://drive.google.com/file/d/1PCdY6MwQpOyhsI6RBiYdCK6NQX2GyRfa/view
How you can take action
1. Share the NDP's petition to end the HST and increase access to mental health care for all Ontarians: https://www.ontariondp.ca/psychotherapy-services
2. Encourage your local MPP to vote for this Private Members’ Bill. Click here for the MPP locator tool.
Script of message you can use
I am calling/writing to ask that you support Bill 61 - Making Psychotherapy Tax-Free Act, 2023. It was introduced on February 21, 2023.
The Bill’s aim is for the HST to be removed from therapy services provided by Registered Psychotherapists.
Since the pandemic, there has been an increased need for mental health care in Ontario. An additional HST charge makes it difficult for people to get help.
We need a full spectrum of mental health professionals to support the growing range of mental health supports needed by a vastly diverse population. A tax on one place is an unnecessary barrier, is a burden on access and is counter intuitive to a team approach.
Your support is essential to getting this unfair tax removed, and to ensuring better health care for all Ontarians.