Tax Tip:  GST/HST Collected in Error on Naturopathic Services

The 2014 Federal Budget added naturopaths andacupuncturists to the list ofexempt health care providers effective for supplies made after February 11, 2014; However, Bill C-31 containing this provision did not receive Royal Assent until June 19, 2014. As such, many naturopaths and acupuncturists may have collected GST/HST in error until June 19, 2014 and perhaps even after this date if they were not aware of the change.

The Canadian Association of Naturopathic Doctors (CAND) released GST/HST Exemption Update 8 – GST/HST Collected in Error, which discusses two options naturopathic doctors can take if they incorrectly collected GST/HST on their exempt services:

  • Refund or credit the amount to the patient.
  • Advise the patient that they can claim a rebate of the GST/HST paid from CRA on Form GST189.
  • Additional details on both of these options can be found in the Update.

Action Item: If you have incorrectly paid GST/HST on exempt naturopath or acupuncturist services, consider applying for a rebate with CRA.