Proposed GST/HST Exemptions for Psychotherapy and Counselling Therapy Services

In the fall of 2023, the Minister of Finance tabled an amendment to Part II of Schedule V of the Excise Tax Act (ETA), which sets out the healthcare services exempt from GST/HST. The proposed amendment will add the supply of psychotherapy and counselling therapy to the list of exempt healthcare services. 

In addition, the definition of a “practitioner” found in section 1 of Part II of Schedule V to the ETA will be updated to include individuals who provide these two types of services. These amendments will take effect once they receive royal assent. 

Further details about the implications of the new GST/HST exemptions for psychotherapy and counselling therapy services can be found in Canada Revenue Agency GST/HST Notice 334 and GST/HST Notice 335, respectively.