Most medical services are exempt from GST. However, physicians may be required to register with the Canada Revenue Agency (CRA) and collect GST if their billing for non-exempt services reaches a certain threshold.

Insured medical services are exempt from GST – including all consultative, diagnostic, and treatment services. CRA has also determined that many non-insured services are exempt from GST, including:

  • executive” medical assessments;
  • medical reports prepared for patients following a physical exam for the purposes of promoting, protecting, or maintaining health;
  • fees for the preparation and transfer of medical records;
  • employment and pre-employment examinations and reports;
  • immigration examinations and reports; and
  • Back to work/​timely return to work/​modified employment forms for third party insurers. (e.g. WCB, MPI private insurers)

If the primary purpose of a medical service is not to protect, maintain, or restore health, GST must be collected if the physician exceeds the minimum threshold. Some examples include:

  • Cosmetic surgical procedures;
  • Medical-legal reports, expert opinion reports, and witness fees for court appearances;
  • Certificates and notes for employers, educational institutions, camps, and travel;
  • Medical reports based on a chart review and not a physical examination;
  • CPP disability reports;
  • Block and annual fees;
  • Teaching stipends;
  • Consulting and research services;
  • Fees for administrative roles.

A physician reaches the minimum threshold where the total services attracting GST exceed the combined sum of $30,000 in four consecutive quarters. For those physicians not exceeding this amount, GST registration is voluntary and GST need not be collected.

Where a physician is incorporated as a professional corporation, the corporation and not the physician must register for the GST if the minimum threshold is met. However, even where the threshold is met, the corporation collects GST only on those medical services which are not exempt.

If you believe that your practice could exceed the $30,000 threshold, you should obtain advice from a tax expert.

You may also request from CRA an advance ruling” without charge. For further information regarding the GST, contact Canada Revenue Agency toll-free at 18009598287, or visit the Canada Revenue Agency website.

Last updated
September 2, 2022