Effective June 20, 2024, psychotherapy and counselling therapy services are exempt from GST/HST and QST if they are rendered to an individual by a practitioner of such services.

Psychotherapy services

The GST/HST and QST exemption applies only to the supply of psychotherapy services rendered to an individual by a practitioner of such services.

To be considered a practitioner of psychotherapy services in Québec, you must: 

• practise the profession of psychotherapy;
• hold a psychotherapist's permit issued by the Ordre des psychologues du Québec.

Refer to the Québec legislation applicable to the practice of psychotherapy to determine whether your services are considered psychotherapy services.

Counselling therapy services

The GST/HST and QST exemption applies only to the supply of counselling therapy services rendered to an individual by a practitioner of such services.

In Québec, a practitioner who provides counselling therapy services is someone who practises the profession of guidance counsellor, psychoeducator, sexologist, criminologist or marriage and family therapist. 

Refer to the Québec legislation applicable to these professions to determine whether your services are considered counselling therapy services.

Qualifying health care supply

To be exempt, the supply of psychotherapy or counselling therapy services must be a qualifying health care supply.

A qualifying health care supply is a supply made to:

• maintain health;
• prevent disease;
• treat, relieve or remediate an injury, illness, disorder or disability;
• assist (other than financially) an individual in coping with an injury, illness, disorder or disability; or
• provide palliative health care.

The following are not considered qualifying health care supplies: 

• evaluations and reports supplied solely for the purpose of assisting an insurer in determining if an individual is entitled to receive benefits;
• services supplied for financial purposes, such as a medical evaluation or assessment performed to determine the value of injuries for a settlement of a claim for damages.

For more information, including the scope of the term "qualifying health care supply,” see the Canada Revenue Agency's GST/HST Policy Statement P-256, Qualifying Health Care Supplies and the Application of the GST/HST to Supplies of Medical Examinations, Assessments, Reports and Certificates.

Cosmetic services

Psychotherapy and counselling therapy services provided for cosmetic purposes (and not for medical or reconstructive purposes) are taxable.

Services paid or payable under a health care plan

Psychotherapy and counselling therapy services that are payable or reimbursed by a provincial government under a provincially legislated health care plan (other than zero-rated services) are exempt even if the services were provided for cosmetic purposes or they do not constitute a qualifying health care supply.

GST/HST and QST registration

If you are registered for the GST/HST and QST, you must stop collecting GST/HST and QST on exempt psychotherapy and counselling therapy services starting June 20, 2024.  

If you only make exempt supplies, you must request the cancellation of your GST/HST and QST registration by filing form LM-1.A-V, Request for Cancellation or Variation of Registration. 

If you make both taxable and exempt supplies, you may want to review your GST/HST and QST registration obligations.

Note that if you cancel your GST/HST and QST registration, you will have a last reporting period that ends on the day before the day the cancellation is effective. A return for the last reporting period must be filed no later than one month after the end of that period. At the time of cancellation, all property intended for consumption, use or sale in the course of your commercial activities will be considered sold and you will have to remit the GST/HST and QST on the deemed sales. Different rules apply to capital property, non-capital property, services and rental property.

For more information about the consequences of cancelling your GST/HST and QST registration, see guide IN-203-V, General Information Concerning the QST and GST/HST.

For more information about the exemption for psychotherapy and counselling therapy services, see the following Canada Revenue Agency publications: 

• GST/HST Notice 334, Proposed Amendment – Exemption for Psychotherapy Services (March 2024) 
• GST/HST Notice 335, Proposed Amendment - Exemption for Counselling Therapy Services (March 2024)
• Clarifying the New GST/HST Exemption for Psychotherapy and Counselling Therapy Services (July 15, 2024)