New GST/HST Exemption for Psychotherapy and Counselling Services

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Is Psychotherapy exempt from GST/HST?

Yes, 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.

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As a CPA in Ontario, I will explain all the ins and outs of Canada’s latest GST/HST exemption: psychotherapy and counselling

So, when did this come into effect?

This new exemption came into effect in June 2024 and applies to pretty much everyone working in the psychotherapy or counselling fields—well, almost everyone. Those operating out of Quebec may be out of luck, but you’ll need to get in touch with Revenu Quebec to clarify the matter for you.

What does any of this mean?

GST/HST is a tax placed on most goods and services in Canada, driving up prices for consumers. With psychotherapy and counselling services already expensive enough as it is, those extra charges really stack up. 

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Thanks to the new exemption, however, these services are required to remove the extra tax from their bills, which benefits consumers and service providers alike. As the old saying goes, you catch more flies with tax exemption than with honey.

Who does this apply to?

Of course, psychotherapy and counselling are such broad terms. Your grandparents may give good advice, but the government has yet to pass a “sage wisdom” GST/HST exemption. You may be exempt if you:

• Are licensed with a provincial regulatory body responsible for psychotherapy and counselling services; or
• Possess the necessary requirements in an area with no governing body; and
• Provide services that fall within the scope of that field.

What do you need to do if you are a Psychotherapist for the new GST/HST exemption?

If you think you qualify for the exemption, you will need to stop charging GST/HST for your services, and speak to your professional body and the Canada Revenue Agency. If all of your services fall within the scope of this exemption, you may close your CRA (Canadian Revenue Service) account online or by mail.

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For more information, visit Canada.ca or you can always contact the CRA itself. They can be reached by email at cra-arc.media@cra-arc.gc.ca or by telephone at 613-948-8366.

If you’re looking for a CPA in Ottawa, please don’t hesitate to reach out.

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