The CRA recently issued GST/HST Technical Information Bulletin B-110, “Application of the GST/HST to the Practice of Acupuncture”, which explains how GST/HST applies to goods and services supplied by a person practicing the profession of acupuncture (but not supplies of acupuncture services made by other licensed or certified health care professionals, such as physiotherapists).
This comprehensive publication describes the conditions under which a supply of acupuncture services may be exempt from GST/HST. Under section 7 of Part II of Schedule V to the Excise Tax Act (“ETA”), a supply of an acupuncture service will be exempt if the service:
Prior to February 11, 2014, persons practicing the profession of acupuncture were not included as exempt health care practitioners under Part II of Schedule V to the ETA. However, the ETA was amended as of that date to include acupuncturists and, subject to meeting specific criteria, the GST/HST exemption for health care services now applies to eligible acupuncture services rendered to an individual by a qualifying practitioner.
The bulletin uses several examples to illustrate the application of GST/HST to acupuncture services in various situations, and provides general information for medical practices, including the application of GST/HST to the sale of products and other services, as well as discussion on the place of supply rules, input tax credits, and registration requirements.