GST/HST can be a confusing topic for naturopaths. This page explains the mechanics of how it works. For a higher-level understanding, check out our blog post on How to HST.

When to charge GST/HST

We’ll keep this really simple. You should only charge GST/HST when you meet both of the following criteria:

  1. You’re selling a taxable good or service, and

  2. You’re registered for GST/HST

1. You’re selling a taxable good or service

There are complex rules around which products are taxable, and to make it more complex, some products are taxable only in certain situations. For an in-depth discussion, check out our page on Which Naturopathic Sales are Taxable. Here are some good rules of thumb:

Non-taxable sales:

  • Most naturopathic services performed by an ND for a patient in a clinical setting

  • IVs and injections for non-cosmetic purposes

  • Administrative fees related to any of the above (e.g., cancellation fees)

Taxable sales:

  • Supplements

  • Commissions on supplement sales (e.g., paid to you by your clinic or an online pharmacy)

  • Any cosmetic service (including treatment of most acne conditions)

  • Sale of merchandise

  • Work performed on behalf of an insurance or legal firm

  • Most group or online programs

2. You’re registered for GST/HST

You charge GST/HST on taxable goods and services only when you’re registered for GST/HST. Don’t know whether you’re registered? Talk to your accountant or verify your registration using the CRA’s look-up tool.

You can register for GST/HST either mandatorily or voluntarily.

  • Mandatory registration: In general, you’re required to register for GST/HST if you have taxable sales over $30,000 in any 12-month period.

  • Voluntary registration: You’re able to register for GST/HST voluntarily, as long as you have some amount of taxable sales. That means you can’t register if you only provide non-taxable naturopathic services.

Quick recap…
You only charge GST/HST if you’re selling a taxable good/service AND you’re registered for GST/HST.
You have to register for GST/HST if your taxable sales are above $30,000, otherwise it’s voluntary.
Most new NDs don’t qualify to register for GST/HST, so don’t believe people who tell you to register right after graduation.

You may be asking why you should voluntarily register. Although you will be required to charge your patients GST/HST on taxable sales, you’ll also get a refund of GST/HST you pay on qualifying expenses. For more info, check out our page on Getting a GST/HST Refund.

I’m registered for GST/HST. Now what?

Once you’re registered for GST/HST, remember that you need to charge GST/HST on all taxable goods and services. You also have a few other responsibilities:

  • File an GST/HST return - In addition to filing an income tax return, you’ll also need to file a separate GST/HST return. The CRA will tell you how often you need to file, which will be annually for most naturopaths.

  • Remit the GST/HST you collect - Figuring out when you need to remit the GST/HST you collected is complex because it’s usually a different deadline from your GST/HST return, and you may need to make instalment payments throughout the year. Your accountant can provide more information and help you stay on top of these deadlines. Remember that you need to subtract your GST/HST refund from the amount owing.

  • Keep good records - In addition to being a legal requirement, it’s in your best interest to keep good records of the GST/HST you collect and the GST/HST you pay on qualifying expenses. If you need help, check out HBA’s Healthy Wealth Tracker, our free bookkeeping tool designed specifically for holistic practitioners.