Health care professionals whose primary business involves making exempt supplies may not have considered whether there is a secondary activity that could require registration and accounting for goods and services tax / harmonized sales tax (GST/HST) on certain sales of good and services. In general, this registration requirement applies to a person that makes taxable supplies that exceed the CAD $30,000 “small supplier” threshold. Failure to collect and remit the appropriate amount of GST/HST on these supplies could expose health care professionals to significant tax, interest and penalty assessments from the Canada Revenue Agency.
While many services provided by health care professionals are exempt for purposes of the GST/HST, not all services qualify. For example, certain administrative and managerial services are generally considered GST/HST taxable supplies. These types of services may include scheduling and oversight responsibilities for a particular department, a teaching assignment, or consulting on a board or panel.
Read an August 2015 report prepared by the KPMG member firm in Canada: Health Care Professionals May Have Surprise GST/HST Obligations
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