Tax Exempt Therapies – Practitioners Guide

Canadians have come far with destigmatizing and normalizing therapy, however a barrier many still face in accessing therapy is the excessive costs. In November of 2023, the Minister of Finance proposed an amendment to Part II of Schedule V to the Excise Tax Act. The proposed amendment would add psychotherapy and therapy counselling to the list of Goods and Services Tax (GST) or the Harmonized Sale Tax (HST) exempt services. Luckily, starting June 20, 2024, therapy services will no longer collect GST/HST, increasing accessibility of mental health services for Canadians.

However, this means practitioners will need to gain a new understanding of certain procedures and rules to ensure compliance with their tax obligations.