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: 213989
Dear [Client]:
Subject: GST/HST INTERPRETATION
Applicability of GST/HST to manual osteopathic services
Thank you for your letter of September 18, 2020, concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to supplies of manual osteopathic services.
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.
[…].
INTERPRETATION REQUESTED
You request an interpretation in regards with the article The application of GST/HST to manual osteopathic services in the publication Excise and GST/HST News – No. 108, dated September 2020. You would like to know when the contents of the article take effect and whether manual osteopaths have to account for GST/HST retroactively, or whether they can instead remit GST/HST on a going-forward basis, starting November 1, 2020, where needed. This date would allow for businesses to register for GST/HST, set up appropriate accounting software and consult with accounting professionals, if needed.
INTERPRETATION GIVEN
The article The application of GST/HST to manual osteopathic services outlines the tax status of supplies of manual osteopathic services rendered by manual osteopathic practitioners who are not medical practitioners (licensed physicians or dentists) for GST/HST purposes. Supplies of osteopathy services rendered by manual osteopathic practitioners are subject to the GST/HST at the rate of 5%, 13% or 15% depending on the province in which the supply is made when the supplier is a registrant.
As mentioned in the article, the CRA is taking an educational approach and encouraging the manual osteopathic practitioners to register, if they are not a small supplier.
The publication was recently modified to include the following additional text at the end of the article:
“The CRA reserves the right to assess retroactively where continuous and/or severe non-compliance is observed for the period prior to September 2020. This could be the case where a manual osteopathic practitioner was previously advised that their services were taxable, that they needed to register, and neglected to do so.
Additional information on how to register and start collecting GST/HST can be found at canada.ca/register-gst-hst.”
We hope that the information added to the article addresses your concerns.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the interpretation given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the ETA, regulations, or the CRA’s interpretative policy could affect the interpretation or the additional information provided herein.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 306-517-0416. 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,
John Ware
Health Care Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
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