On July 15, 2024, Canada Revenue Agency issued a memo entitled Clarifying the new GST/HST exemption for psychotherapy and counselling therapy services. A notable clarification is as follows:
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)