CANADA’S NEW TAX EXEMPTION ON REGULATED THERAPY SERVICES | EP 133
Today we are celebrating that Registered Counselling Therapists and Registered Psychotherapists no longer have to charge tax!
There are decades of work behind the scenes to bring this to fruition, so it is a big deal! Thank you to the CCPA for making this happen!
In this podcast episode, I’ll give you all the information about what this means and what you should do next so that you’re in the loop and on the right track.
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In This Episode
- Who doesn’t have to charge tax anymore?
- What does this mean?
- Addressing the change with clients
Who doesn’t have to charge tax anymore?
Last month in June 2024, Bill C59 received royal ascend and that means that GST and HST can successfully be removed from counselling and psychotherapy services in provinces that regulate the profession.
‘I didn’t believe in my wildest dreams that this was going to happen! It just seemed so far-fetched that the government would take taxes off for provinces that are regulated, but it happened! And we are here in this reality where we no longer have to charge tax, it is amazing!’ – Julia Smith
What does this mean?
What this means for therapists across Canada is that if you are in a province that regulates psychotherapy or counselling therapy, which includes;
- Ontario
- Quebec
- New Brunswick
- Nova Scotia
- Prince Edward Island
You no longer have to charge tax on therapy services! However, if you are certified in an unregulated province, it can be a little tricky. You may or may not be able to take tax off of your services, because it depends on if you have the relevant qualifications with a regulated province, what your provinces rules are specifically, and other factors.
‘So before taking off tax in an unregulated province, you will want to speak to your MPs [and] to the board where you are certified just to make sure that you can legally do that.’ – Julia Smith
The CCPA is still advocating for those unregulated provinces so that Canadian Certified Counsellors (CCC) may become included in not having to charge tax anymore, because this is currently not the case.
No matter what, you should still contact the CRA to discuss your individual situation on whether or not to deregister your HST or GST number. Click here to find the CRA link!
Addressing the change with clients
Are you going to take the tax off of your therapy fee? Or are you going to keep the therapy fee the same and give yourself a little bit of a raise? There’s no judgment if you do decide to go with the latter, since inflation has been tough these last few years.
First and foremost, you may want to put yourself in your client’s shoes because by not taking the tax off your fee and keeping it the same – depending on how you word it – your clients may not appreciate that, especially since for them it has also been difficult with inflation and rising costs.
‘If you do decide to give yourself a raise, you want to explain to your clients why you are doing this, so that they understand and can respect it!’ – Julia Smith
Some therapists may not tell the clients that they are doing this because the final fee includes the tax in the price, so the tax could be removed without the clients noticing. But by not informing your clients of the change, it may bring up big issues in the therapeutic alliance if a client finds it out and feels cheated or lied to, so being transparent is usually the best route!
In my private practice, we’ve decided to pass the benefits to our clients.
‘These are the best emails and fun conversations we’ve had with clients!’ – Julia Smith
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Resources Mentioned and Useful Links:
Ep 132: Destin Jones: Creating Canadian Therapist Communities | EP 132
Learn more about the tools and deals that I love and use for my Canadian private practice
Article: How to Set Up a Canadian Private Practice Website
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Learn about Julia’s Canadian private practice
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About Julia
Julia Smith, MEd, RCT, CCC is a registered Counselling Therapist who owns a group private practice in Halifax, Nova Scotia. She is also the owner of Fearless Practice Consulting and hosts the Fearless Practice podcast. Through the Fearless Practice podcast, she provides invaluable insights and practical advice on starting and growing a successful Canadian private practice. Julia’s wealth of knowledge also extends beyond the podcast, as she provides personalized one-on-one consulting to therapists who are feeling burnt out and overwhelmed with their solo or group private practices. With Julia’s expertise, therapists can confidently navigate the complexities of owning a private practice and find work life – balance.
Julia also has written articles for the Canadian Counselling and Psychotherapy association. You can learn more at www.ccpa-accp.ca/blog/.
