Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 126129
Dear [Client]:
Subject: GST/HST RULING
Application of GST/HST to Manual Osteopathic ServicesThank you for your letter of [mm/dd/yyyy], concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to manual osteopathic services. We apologize for the delay in our response.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand that:
1. You are qualified as an Osteopath providing manual osteopathic services and you exercise your profession in Ontario.
2. You are certified by […].
3. You are a member of […][X] and you […].
4. […], [X], is not an official regulating body and it does not certify any provincial recognition.
Please note that, for purposes of this ruling, the terms “manual osteopathic services”, “osteopathic manual practitioner” and “manual osteopathy” do not refer to the profession of osteopathy that is regulated in conjunction with the practice of medicine (i.e., that which is governed by a provincial College of Physicians and Surgeons).
RULING REQUESTED
You would like to know whether your supply of services as an osteopathic manual practitioner is exempt for GST/HST purposes.
RULING GIVEN
Based on the facts set out above, we rule that your supply of services as an osteopathic manual practitioner is taxable for GST/HST purposes at a rate of 13% when supplied in Ontario, as it is not exempt under section 7 of Part II of Schedule V.
EXPLANATION
Generally, most supplies of property and services made in Canada are subject to GST/HST, unless they are specifically exempt under Schedule V or zero-rated (taxed at 0%) under Schedule VI. Part II of Schedule V sets out the health care services that are exempt from GST/HST. A supply of a health care service rendered by a health care professional that is not included in Part II is generally subject to GST/HST.
Currently, there is no provision in the ETA that specifically exempts supplies of manual osteopathic services from GST/HST.
Paragraph 7(f) of Part II of Schedule V
Section 7 of Part II of Schedule V provides exemptions from the GST/HST, which includes osteopathic services (paragraph 7(f)), when these services are rendered to an individual by a “practitioner” of that service.
Section I of Part II of Schedule V defines ‘‘practitioner’’, to mean a person who
(a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, midwifery, dietetics, acupuncture or naturopathy as a naturopathic doctor, as the case may be,
(b) where the person is required to be licensed or otherwise certified to practise the profession in the province in which the service is supplied, is so licensed or certified, and
(c) where the person is not required to be licensed or otherwise certified to practise the profession in that province, has the qualifications equivalent to those necessary to be so licensed or otherwise certified in another province.
For purposes of section 7, to be a practitioner in respect of osteopathic services, a person must be licensed or otherwise certified to practise the profession of osteopathy in the province in which the service is supplied (paragraph (b) of the definition of ‘‘practitioner’’), or, where the person is not required to be licensed or otherwise certified to practise the profession in that province, the person must have the qualifications equivalent to those necessary to be so licensed or otherwise certified in another province (paragraph (c) of that definition).
In order to be licensed or otherwise certified to practise a particular health profession in a province, a person must be a member of a provincial regulatory body responsible for the regulation of the health profession in that province. The role of these provincial regulatory bodies and the authority to monitor and regulate their respective health professions is set out in provincial legislation.
In Ontario, the practise of osteopathy is regulated under the Medicine Act, 1991, and is under the jurisdiction of the College of Physicians and Surgeons of Ontario. Pursuant to 9(3) of the Medicine Act, 1991, no person other than a member of the College shall hold himself or herself out as a person who is qualified to practise as an osteopath in Ontario.
Manual osteopathy is not a regulated health profession in Ontario. There is no provincial licensing body in Ontario for providers of manual osteopathic therapy; i.e., there are no licensing or certification requirements to provide this service.
With respect to the supply of manual osteopathic services made in provinces other than Ontario, it is our understanding that there are no provincial licensing or certification requirements anywhere else in Canada for the profession of manual osteopathy and, there are no provincial regulatory bodies responsible for the regulation of the profession of manual osteopathy. Therefore, a osteopathic manual practitioner is not a "practitioner", as defined in section I of Part II of Schedule V, and supplies made by a manual osteopathic practitioner are not exempt under section 7.
Based on the information you provided, an osteopathic manual practitioner who is certified by […], is not a ‘‘practitioner’’ for purposes of section I of Part II of Schedule V. Therefore, a supply of manual osteopathic services rendered by such a practitioner is not exempt under paragraph 7(f) of Part II of Schedule V.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call Art Blommesteijn directly at 613-670-7932. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Kassandra Leonard
Health Care Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
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