GST/HST Exemption Update

June 21, 2024

On June 17, 2024 Bill C-323, a private members bill put forward by MP Stephen Ellis from Cumberland – Colchester was amended to include massage therapy to be among the health services to be exempted from the Goods and Services Tax.

Previously, Bill C-323 was limited to exempting mental health services from GST/HST.  This is a very encouraging development and MTAM acknowledges the work done by our CMTA colleagues from BC and Ontario who were successful in advocating to local MPs Vis and Ellis.  While this does not ensure that we will be exempted in the next budget, it does link us with mental health services which the current Federal Government has previously said they will exempt from GST/HST.

The Bill now reads, “Bill C323, An Act to amend the Excise Tax Act (mental health services), be not now read a third time but be referred back to the Standing Committee on Finance for the purpose of reconsidering Clause 1 with the view to amend the clause so as to include massage therapy among the health services to be exempted from the Goods and Services Tax, and the committee be invited to consider reporting the bill back to the House within 15 sitting days following the adoption of this order.”

This Private Member's Bill is a promising development. Updates will be posted here as they are available.

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Last fall MTAM, in conjunction with the CMTA, circulated a petition asking for GST/HST exemption for Massage therapy, which closed in April 2024. Over 18,000 people signed the petition across Canada. Thank you to all our members who contributed to this effort by sharing and signing this petition.

The petition was tabled in the House of Commons, which essentially brings it to their attention. On May 30, we received a response to the Petition from the Minister of Finance, which you can review on the Our Commons official website.

In her response, Minister Freeland outlined the Government's position on GST/HST exemption and that massage therapists must meet the required standard for exemption. In her response she states, “Health care services are not automatically added to the list of exempt health care services. A formal request to exempt the service must first be made to the Minister of Finance by the health profession providing the service. The Department of Finance Canada will then review the request to see whether the health profession meets the exemption criteria. If the exemption criteria are met, the Department will then consult with the relevant provincial and territorial associations of the profession to ensure that there is widespread support for the GST/HST exemption. It is the government’s understanding that massage therapy is now regulated in five provinces and a formal request to exempt these services has been received. The government is currently reviewing the request.”

MTAM and the CMTA are encouraged by her response. We will continue to work toward GST/HST exemption and will regularly follow up with the Ministry of Finance and other relevant government officials.

Brad Vis, MP for Mission–Matsqui–Fraser Canyon in BC, presented petition e4662 in Parliament on April 19th. It was signed by 18,362 Canadians requesting that massage therapy be included in the list of practitioners exempt from charging GST/HST for their services.