The exemption of the services provided by naturopaths from GST/HST may have imposed a substantial financial penalty on them

Beware your wishes, for they may be granted.

Most naturopathic services of qualified practitioners were exempted effective February 11, 2014. Accordingly, the practitioners became subject to the change-of-use rules in which they were required to remit HST/GST equal to the input tax credits they previously had claimed on their previous purchases of equipment, furniture and other personal capital property (assuming such property was now being used primarily in making exempt supplies) – subject to a pro rata reduction based on declines in the properties’ fair market values since purchase. A similar rule applied to capital property which was realty, except that the recaptured ITCs were mostly based on the percentage increase in exempt use - rather than being an all-or-nothing (primary use) test.

Accordingly, this "gift" from the government could be very expensive for those practitioners who had purchased their own buildings.

Neal Armstrong, Summaries of B-109 "Application of the GST/HST to the Practice of Naturopathic Doctors" under ETA, s. 200(2), s. 206(5), s. 123(1) – recipient, s. 123(1) – supply, s. 182(1), Sched. V, Pt, II, s. 1 – qualifying health care supply, Pt, II, s. 7.