CRA indicates that whether a virtual medical service is rendered at the location of the health professional or of the patient requires a review of the provincial licensing requirements
S. 118.4(2)(a) indicates, respecting references in various provisions to listed types of health-care professionals, that “where the reference is used in respect of a service rendered to a taxpayer,” the reference to an authorized health care professional refers to authorization “pursuant to the laws of the jurisdiction in which the service is rendered.” In the context of services rendered virtually, is this referring to the health care professional’s location at the time of rendering the services, or to the location of the patient at such times? CRA stated:
It is a question of fact whether a virtual medical service is considered rendered at the location of the health care professional, the location of the patient, or both. Many governing bodies regulate virtual medical services performed within their province. This can include licensing requirements for professionals performing virtual medical services within their province, licensing requirements for professionals in their province performing virtual medical services for a patient in another province, licensing requirements for professionals performing virtual medical services from outside their province for an individual within their province, and so on. Each of these requirements must be considered before a determination can be made.
This indicates that CRA does not want to address in the abstract the question of whether health-care professionals are “authorized” if they are licensed in the location where they are sitting at their screens but not where their patient is located, or vice versa, without reviewing the actual licensing rules.
Accordingly, this interpretation does not illuminate the question as to whether a professional working outside Canada can be considered to be rendering services in Canada to Canadian clients for purposes of Reg. 105.
Neal Armstrong. Summary of 29 June 2022 External T.I. 2022-0923441E5 under s. 118.4(2)(a).