HST/GST on Physician Services: What’s Taxable and What’s Exempt?

Medical services that are primarily aimed at protecting, maintaining, or restoring health are generally exempt from HST/GST. The Canada Revenue Agency (CRA) classifies the following healthcare services as exempt: 

• Medical examinations, assessments, and diagnoses 
• Medical treatments and procedures 
• Emergency medical services 
• Physician services, including consultations and surgeries 
• Nursing services 
• Laboratory and diagnostic testing services 
• Ambulance services 
• Physiotherapy, chiropractic, and other paramedical services provided by qualified practitioners 
• Prescription drugs and medical devices 
• Medical and hospital care provided by licensed facilities and professionals 
• Veterinary services for animal treatment 
• Occupational therapy and speech-language pathology services 

A “practitioner” is described in the Act as someone who practices a relevant profession and is either licensed or has equivalent qualifications to practice in the province where the service is provided. Corporations can also qualify as medical or other practitioners, allowing them to offer healthcare services through employees or independent contractors. However, corporations that don’t fit the definition of a practitioner should be cautious as their services might not be exempt. 

Taxable Services for Physicians: 

Services that don’t primarily aim to protect, maintain, or restore health are considered taxable under HST/GST. Examples of such non-medical services include: 

• Cosmetic surgeries and elective procedures that aren’t medically necessary 
• Personal training services 
• CPP disability reports 
• Certificates or letters for employers, camps, or educational institutions 
• Medical document reviews for third parties 
• Consulting/research services 
• Administrative roles in hospitals 
• Spa and beauty treatments, like facials and massages 
• Gym memberships and fitness classes 
• Coaching and consulting services 
• Nutrition and weight loss programs 
• Services from unregistered naturopaths and alternative healthcare practitioners 
• Home healthcare from unlicensed caregivers 
• Non-prescription products sold by healthcare providers, such as supplements and vitamins 
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This list isn’t exhaustive, and there might be exceptions or specific situations where certain services could be either taxable or exempt. It’s advisable to consult CRA guides, publications, or tax professionals for detailed information on HST and non-medical services.