Canada: Health care professionals; GST/HST liability

GST/HST liability of Canadian health care providers

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.


Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.