GST/HST Technical Information Bulletin B-110 Application of the GST/HST to the Practice of Acupuncture April 2017

Meaning of “acupuncturist”

"Acupuncturist" refers to an individual who is a registered member of a provincial regulatory body for the profession of acupuncture and can legally use the title "Acupuncturist" (R.Ac), "Doctor of Acupuncture" (Dr.Ac), "Traditional Chinese Medicine Practitioner" (R.TCMP), or "Doctor of Traditional Chinese Medicine" (Dr.TCM). An acupuncturist also refers to an individual who practises the profession of acupuncture in an unregulated province or territory and has the qualifications equivalent to the qualifications necessary to be licensed in a regulated province.

Principles applicable to single v. multiple supply of acupuncture supply

[T]o correctly apply the GST/HST, it is necessary to determine whether the different treatment modalities and/or property supplied to a patient constitute a single supply or multiple supplies of a service(s) or property….

[T]he terms of an agreement (that is, the treatment agreed upon and reflected in an invoice) between an acupuncturist and patient establish what the acupuncturist is agreeing to provide and what the patient is expecting to receive for the consideration paid. However, it is important to note that the manner in which the price for a transaction is set out (for example, a single price or separately identified prices on an invoice) does not by itself determine whether there is a single supply or multiple supplies….

If a single supply is being made, then the predominant element of that supply must be established to determine the nature of the supply….

Example of multiple supply of acupuncturist and massage service

Example 2

An acupuncturist in Ontario assesses a patient and determines that the patient requires both acupuncture and massage therapy to treat the patient’s tendonitis. The acupuncturist is also registered with the College of Massage Therapists of Ontario. During the patient’s visit, the patient receives 40 minutes of acupuncture and 20 minutes of massage therapy. The patient is invoiced a separate fee for the acupuncture and massage therapy according to the percentage of time each modality was performed.

Based on the facts above, it is assumed that the acupuncturist is making two separate supplies: one of acupuncture and one of massage therapy….

Professional relationship requirement

For purposes of section 7 of Part II of Schedule V, an acupuncture service rendered to an individual means that there is a professional relationship between the individual receiving the acupuncture service and the acupuncturist for purposes of meeting the individual’s health care needs.

Separate supplies of herbal goods

Sales of products such as dried herbs and herbal goods for medicinal purposes are generally separate supplies made by the acupuncturist and do not form part of an acupuncture service. As such, most sales of these products are subject to the GST/HST. Such products also include botanical medicines, Chinese herbal medicines, and tinctures, ointments, and nutritional supplements, whether or not dispensed by an acupuncturist….

Acupuncturists in unregulated provinces should contact other provinces’ governing bodies

[S]upplies of acupuncture services made by a R.Ac, Dr.Ac, R.TCMP, or Dr.TCM are generally exempt….

[I]n Manitoba, Saskatchewan, Prince Edward Island, Nova Scotia, New Brunswick, Yukon, the Northwest Territories or Nunavut…the person should contact the regulatory body in any of the regulated provinces to determine if their qualifications are equivalent to those necessary to be licensed or otherwise certified in that province….

Principles applicable to single v. multiple supply of acupuncture supply

[T]o correctly apply the GST/HST, it is necessary to determine whether the different treatment modalities and/or property supplied to a patient constitute a single supply or multiple supplies of a service(s) or property….

[T]he terms of an agreement (that is, the treatment agreed upon and reflected in an invoice) between an acupuncturist and patient establish what the acupuncturist is agreeing to provide and what the patient is expecting to receive for the consideration paid. However, it is important to note that the manner in which the price for a transaction is set out (for example, a single price or separately identified prices on an invoice) does not by itself determine whether there is a single supply or multiple supplies….

If a single supply is being made, then the predominant element of that supply must be established to determine the nature of the supply….

Example of multiple supply of acupuncturist and massage service

Example 2

An acupuncturist in Ontario assesses a patient and determines that the patient requires both acupuncture and massage therapy to treat the patient’s tendonitis. The acupuncturist is also registered with the College of Massage Therapists of Ontario. During the patient’s visit, the patient receives 40 minutes of acupuncture and 20 minutes of massage therapy. The patient is invoiced a separate fee for the acupuncture and massage therapy according to the percentage of time each modality was performed.

Based on the facts above, it is assumed that the acupuncturist is making two separate supplies: one of acupuncture and one of massage therapy….

Separate supplies of herbal goods by acupuncturist

Sales of products such as dried herbs and herbal goods for medicinal purposes are generally separate supplies made by the acupuncturist and do not form part of an acupuncture service. As such, most sales of these products are subject to the GST/HST. Such products also include botanical medicines, Chinese herbal medicines, and tinctures, ointments, and nutritional supplements, whether or not dispensed by an acupuncturist….

Cancellalation fee paid to acupuncturist

A cancellation fee paid by a patient for a missed or cancelled appointment is treated as payment for the intended supply (that is, the acupuncture service or other treatment modality)….