GST/HST Complete Guide for Mental Health Professionals
GST/HST rules can be confusing, especially when your services may be partly exempt. This guide helps you know when to register, when to charge, and how to keep your records straight.
Good News: Most Therapy Services Are GST/HST Exempt
Clinical services by regulated mental health professionals are usually exempt. However, some services — like coaching or corporate training — may be taxable.
Why This Matters to You:
- • Avoid charging tax when you don't need to
- • Avoid missing tax on services that require it
- • Understand the $30,000 registration threshold in plain language
GST/HST Exempt Services
✅ Definitely Exempt
- Psychotherapy SessionsIndividual, couple, family, group therapy
- Psychological AssessmentsDiagnostic assessments by registered psychologists
- Clinical ServicesServices by regulated mental health professionals
- Crisis InterventionEmergency mental health services
⚠️ May Be Taxable
- Coaching ServicesLife coaching, career coaching
- Training & WorkshopsProfessional development, corporate training
- Consultation ServicesBusiness consulting, program development
- Products SalesBooks, resources, merchandise
Registration Requirements
Explains who must register and why, with examples for different practice types.
$30,000 Registration Threshold
You must register for GST/HST if your total taxable supplies exceed $30,000 in any four consecutive calendar quarters, or in a single calendar quarter.
Mostly Exempt Services
If 90%+ of your revenue comes from exempt therapy services, you likely won't need to register for GST/HST even with high revenue.
Mixed Services
If you provide coaching, training, or other taxable services, you may need to register and charge GST/HST on the taxable portions.
Provincial Tax Rates (2025)
| Province/Territory | GST | PST/QST | HST | Total Rate |
|---|---|---|---|---|
| Alberta | 5% | 0% | N/A | 5% |
| British Columbia | 5% | 7% | N/A | 12% |
| Manitoba | 5% | 7% | N/A | 12% |
| New Brunswick | N/A | N/A | 15% | 15% |
| Newfoundland | N/A | N/A | 15% | 15% |
| Northwest Territories | 5% | 0% | N/A | 5% |
| Nova Scotia | N/A | N/A | 15% | 15% |
| Nunavut | 5% | 0% | N/A | 5% |
| Ontario | N/A | N/A | 13% | 13% |
| Prince Edward Island | N/A | N/A | 15% | 15% |
| Quebec | 5% | 9.975% | N/A | 14.975% |
| Saskatchewan | 5% | 6% | N/A | 11% |
| Yukon | 5% | 0% | N/A | 5% |
Input Tax Credits (ITCs)
Even if you're exempt, registration may let you recover GST/HST on business expenses. This section explains when that's worth considering.
Even if Your Services Are Exempt, You May Still Benefit from Registration
If you're registered for GST/HST, you can claim Input Tax Credits (ITCs) on business expenses, even if most of your services are exempt.
What You Can Claim ITCs On:
- Office supplies and equipment
- Software subscriptions (SimplePractice, etc.)
- Professional development courses
- Marketing and advertising
- Vehicle expenses (business portion)
- Home office expenses (if registered)
- Professional fees (accounting, legal)
- Conference and travel expenses
Common Scenarios
Clear examples of therapy-only, mixed-service, and training-based practices — so you can see which rules apply to you.
Scenario 1: Pure Therapy Practice
Services: Only individual and group therapy sessions
Annual Revenue: $150,000
✅ No GST/HST registration required. All services are exempt.
Scenario 2: Therapy + Coaching
Services: $80,000 therapy + $40,000 life coaching
Annual Revenue: $120,000
⚠️ May need to register for GST/HST on coaching services ($40,000 > $30,000 threshold).
Scenario 3: Therapy + Training Business
Services: $60,000 therapy + $50,000 corporate training
Annual Revenue: $110,000
ℹ️ Must register for GST/HST. Can claim ITCs on all business expenses.
Get Your GST/HST Decision Tool
Unsure if you need to register for GST/HST? Download our decision flowchart and calculator.