OsteopathyBC has been coordinating with the other members of the CFO on a response to the Canada Revenue news that GST/HST applies to Manual Osteopathy. The CFO has consulted their tax lawyer and the information below is based on these consultations.
The bottom line is, we must all register for, charge, collect and remit GST if our incomes are $30,000 or more. You should register before October 1, 2020.
Charge GST = adding the GST amount to your invoice along with your GST number
Collecting GST happens when you collect payment from the patient
Remitting GST either quarterly or annually, depending on requirements from the CRA. You will be required to file a GST Return each year and you can decrease the amount of GST remitted by claiming Input Tax Credits (ITC's) or by singing up for the Quick Method. Speak to an account to figure out the best method and how to set it up.
As a result, all individuals (and their corporations) carrying on a manual Osteopathic practice that are represented within the CFO member associations should determine if they need GST/HST registration (add the GST RT Suffix, e.g. RT-0001, to their Business Number). If your business has revenue from osteopathic and any other taxable services (e.g., athletic therapist services) totalling in excess of $30,000 in four consecutive calendar quarters, GST registration (RT Suffix) is now mandatory.
You can then begin to charge, collect and remit GST for Osteopathic services provided at the appropriate rate for the province or territory in which you practise (5% in BC). Please note GST registration will allow you to recover all GST you pay on business operating expenses (e.g. rent/supplies etc.) so this will reduce your business costs.
What you need to do:
Register if needed and begin to charge and collect GST on or before October 1st
Avoid correspondence with CRA; for example: register online.
Campaigns through patients, Members of Parliament, etc. may only serve to make the situation worse, so please avoid this.
Practitioners should contact an accountant for business advice regarding GST.
Practitioners within the CFO family of associations should not be audited in regard to GST/HST collection and Osteopathy for dates prior to Oct. 1,2020 but this is still being negotiated.
If anyone receives contact from CRA in regards to this matter, please let OBC (info [at] osteopathybc.ca) know right away and we will contact the CFO and coordinate a response.
For general questions regarding Osteopathy and GST, please contact us at info [at] osteopathybc.ca
For specific questions regarding your practice or business and GST, contact your accountant.