Why do massage therapists charge HST?
In Canada, a health care profession must be regulated in five provinces before being exempt from the federal Goods & Services Tax (GST). In Ontario, this is grouped with Provincial Sales Tax into the Harmonized Sales Tax (HST). To date, massage therapy is regulated only in Ontario, Newfoundland, and British Columbia. The Registered Massage Therapists Association of Ontario is currently working on getting regulatory bodies in other provinces, but in the mean time your therapist is required to obtain an HST number and charge HST.
Under the federal Excise Tax Act, massage therapy is a service to which GST is applied. While massage therapists are considered health care practitioners under Ontario Regulated Health Professions Act, 1991, massage therapy is not included in the definition of health services that are exempt from the application of the GST. The list of exemptions is controlled by the federal government and the federal Minister of Finance has made it clear that the current policies governing exemptions will remain in place. A health profession can be exempted if is it regulated in five provinces or territories or if it is paid for in the health plans of three provinces. Massage therapy does not meet either of these conditions.
