SPMPO - GST Update September 28, 2020

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Dear OsteopathyBC,

September 28, 2020

Update on GST for OBC members,

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.

Please refer to these links:

The information below is based on the CFO memo which you can read in its entirety in the Members’ Only Section of the OBC website. That letter is not to be shared or circulated.
Read the CFO Memo in the Member's Only Section
As stated in the CRA GST/HST News, CRA has now publicly announced that GST/HST is applicable to all manual Osteopathic services in every province and territory as, under current regulatory law (as you know), such services are not licensed or regulated by any province.  https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/news108/news108-excise-gst-hst-news-no-108-august-2020.html#_Toc46924574

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.

This can be done online at https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html

or through your CRA My Account https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html?utm_campaign=not-applicable&utm_medium=vanity-url&utm_source=canada-ca_my-cra-business-account  

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.

How to register summary:

Thank you!

"Coming together is a beginning; keeping together is progress; working together is success."
- Edward Everett Hale -

In health, 

The Osteopathy BC Board
Copyright © 2020 Osteopathy BC, All rights reserved.

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