GST/HST — psychotherapy and counselling therapy (Federal)
Psychotherapy and counselling therapy services rendered to an individual by a “practitioner” of the service are exempt supplies — GST/HST is not charged on them. On becoming exempt, three consequences follow that practitioners routinely miss: input tax credits are no longer claimable on inputs acquired to make these supplies; a change in use of capital property may trigger a deemed sale and repurchase; and a registrant whose supplies are all exempt is not required to be registered and may close the GST/HST account.
“7 A supply of any of the following services if the service is rendered to an individual by a practitioner of the service: (a) optometric services; … (j) psychological services; (j.1) psychotherapy services; (j.2) counselling therapy services; (k) midwifery services; (l) acupuncture services; and (m) naturopathic services.” — Excise Tax Act, Schedule V, Part II, s. 7 (Justice Laws consolidation, Act current to 2026-06-14)