Revenu Québec Infos

A mortgage loan supplied by a mortgage lender to a borrower is an exempt financial service. When a mortgage broker provides an “arranging for” service in relation to the supply of the mortgage loan, the mortgage broker is also making an exempt supply of a financial service.

When a mortgage broker is a franchisee and is required to pay to the franchisor a portion of the revenue earned through its exempt activity as part of its franchise fee, the tax status of the franchise fee must be determined based on the franchise agreement.

Generally speaking, the franchisee pays franchise fees for the right to operate a franchise, which includes the right to use the name of the franchisor as an advertising tool and any systems made available by the franchisor to facilitate the operation of the franchise. The supply of such a right is a supply of incorporeal movable property (“intangible personal property” under the federal system).

Supplies of incorporeal movable property are generally taxable. If the franchisor is a GST and QST registrant, the franchisor is required to charge and collect GST and QST on the franchise fee payable by the franchisee for the property. If the franchisee is required to include in its franchise fee a percentage of its revenue earned through making exempt supplies of financial services, it is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

The agreement between a franchisor and a franchisee may provide that the franchise fee also includes a percentage of any incentive payments paid to the franchisee by a mortgage lender. For example, a mortgage broker franchisor may enter into an agreement with a mortgage lender which provides for incentive payments to be paid by the lender to the franchisee when certain sales volumes are reached. If a percentage of these incentive payments forms part of the franchise fee, the franchisee is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

Furthermore, if the mortgage lender sends a franchisor the total amount of all the incentive payments earned by the franchisor's franchisees with instructions on how to divide the lump sum incentive payment between the franchisees and the franchisor retains an amount that corresponds to each franchisee's franchise fee, the portion of the incentive payment retained by the franchisor as part of the franchise fee is still subject to the GST and QST, which is payable by the franchisee.

For more information on financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

A mortgage loan supplied by a mortgage lender to a borrower is an exempt financial service. When a mortgage broker provides an “arranging for” service in relation to the supply of the mortgage loan, the mortgage broker is also making an exempt supply of a financial service.

When a mortgage broker is a franchisee and is required to pay to the franchisor a portion of the revenue earned through its exempt activity as part of its franchise fee, the tax status of the franchise fee must be determined based on the franchise agreement.

Generally speaking, the franchisee pays franchise fees for the right to operate a franchise, which includes the right to use the name of the franchisor as an advertising tool and any systems made available by the franchisor to facilitate the operation of the franchise. The supply of such a right is a supply of incorporeal movable property (“intangible personal property” under the federal system).

Supplies of incorporeal movable property are generally taxable. If the franchisor is a GST and QST registrant, the franchisor is required to charge and collect GST and QST on the franchise fee payable by the franchisee for the property. If the franchisee is required to include in its franchise fee a percentage of its revenue earned through making exempt supplies of financial services, it is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

The agreement between a franchisor and a franchisee may provide that the franchise fee also includes a percentage of any incentive payments paid to the franchisee by a mortgage lender. For example, a mortgage broker franchisor may enter into an agreement with a mortgage lender which provides for incentive payments to be paid by the lender to the franchisee when certain sales volumes are reached. If a percentage of these incentive payments forms part of the franchise fee, the franchisee is still required to pay GST and QST on the entire franchise fee payable to the franchisor.

Furthermore, if the mortgage lender sends a franchisor the total amount of all the incentive payments earned by the franchisor's franchisees with instructions on how to divide the lump sum incentive payment between the franchisees and the franchisor retains an amount that corresponds to each franchisee's franchise fee, the portion of the incentive payment retained by the franchisor as part of the franchise fee is still subject to the GST and QST, which is payable by the franchisee.

For more information on financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

An arts service organization can register as a recognized national arts service organization (RNASO) for the purposes of the Income Tax Act and the Taxation Act.

For GST and QST purposes, a RNASO is not considered a charity because it is not a registered charity or a registered Canadian amateur athletic association under the Income Tax Act or the Taxation Act. A RNASO is also not a public institution.

However, a RNASO can be considered a non-profit organization (NPO) for GST and QST purposes. An NPO is an entity (other than a succession, trust, charity, public institution, municipality or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• No portion of its income is payable to its proprietors, members or shareholders, or made available to them for personal gain, unless the proprietor, member or shareholder is a club or an association whose primary purpose is to promote amateur athletics in Canada. 

For more information, see GST/HST Policy Statement P-215, Determination of whether an entity is a "non-profit organization" for purpose of the Excise Tax Act ("ETA").

For more information about how the GST and QST apply to NPOs, including the rebate that public service bodies can claim as a qualifying NPO, see document IN-229-V, The QST and the GST/HST: How They Apply to Non-Profit Organizations.

An arts service organization can register as a recognized national arts service organization (RNASO) for the purposes of the Income Tax Act and the Taxation Act.

For GST and QST purposes, a RNASO is not considered a charity because it is not a registered charity or a registered Canadian amateur athletic association under the Income Tax Act or the Taxation Act. A RNASO is also not a public institution.

However, a RNASO can be considered a non-profit organization (NPO) for GST and QST purposes. An NPO is an entity (other than a succession, trust, charity, public institution, municipality or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• No portion of its income is payable to its proprietors, members or shareholders, or made available to them for personal gain, unless the proprietor, member or shareholder is a club or an association whose primary purpose is to promote amateur athletics in Canada. 

For more information, see GST/HST Policy Statement P-215, Determination of whether an entity is a "non-profit organization" for purpose of the Excise Tax Act ("ETA").

For more information about how the GST and QST apply to NPOs, including the rebate that public service bodies can claim as a qualifying NPO, see document IN-229-V, The QST and the GST/HST: How They Apply to Non-Profit Organizations.

An arts service organization can register as a recognized national arts service organization (RNASO) for the purposes of the Income Tax Act and the Taxation Act.

For GST and QST purposes, a RNASO is not considered a charity because it is not a registered charity or a registered Canadian amateur athletic association under the Income Tax Act or the Taxation Act. A RNASO is also not a public institution.

However, a RNASO can be considered a non-profit organization (NPO) for GST and QST purposes. An NPO is an entity (other than a succession, trust, charity, public institution, municipality or government) that meets the following conditions:

• It is organized and operated solely for non-profit purposes.
• No portion of its income is payable to its proprietors, members or shareholders, or made available to them for personal gain, unless the proprietor, member or shareholder is a club or an association whose primary purpose is to promote amateur athletics in Canada. 

For more information, see GST/HST Policy Statement P-215, Determination of whether an entity is a "non-profit organization" for purpose of the Excise Tax Act ("ETA").

For more information about how the GST and QST apply to NPOs, including the rebate that public service bodies can claim as a qualifying NPO, see document IN-229-V, The QST and the GST/HST: How They Apply to Non-Profit Organizations.

An insurer may enter into an agreement with a person to have that person provide the insurer with a claims administration service relating to insurance policies the insurer issues. The insurer pays the person a fee for the service. As a rule, such a service provided to an insurer is a taxable supply.

Example

An insurer enters into an agreement with a company to have that company provide the insurer with a claims administration service relating to certain travel insurance policies the insurer supplies. The insurer pays the company a fee for the service.

As part of the service provided, the company:

• receives claim information from a claimant;
• confirms that the claimant was insured under the insurance policy when the expenses were incurred;
• checks that the expenses for which the claim is made are in accordance with the terms and conditions of the insurance policy;
• processes the insurer's payment in respect of the claim;
• obtains approval from the insurer prior to processing a claim if more than an agreed amount is claimed; and
• provides regular standard reports to the insurer regarding its service and the claims that it processes. 

In this example, the company is making a taxable supply of an administrative service to the insurer. The service is not considered to be a financial service. If the company is a GST and QST registrant, it will generally be required to collect GST and QST on the payment received from the insurer.

For more information about financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

An insurer may enter into an agreement with a person to have that person provide the insurer with a claims administration service relating to insurance policies the insurer issues. The insurer pays the person a fee for the service. As a rule, such a service provided to an insurer is a taxable supply.

Example

An insurer enters into an agreement with a company to have that company provide the insurer with a claims administration service relating to certain travel insurance policies the insurer supplies. The insurer pays the company a fee for the service.

As part of the service provided, the company:

• receives claim information from a claimant;
• confirms that the claimant was insured under the insurance policy when the expenses were incurred;
• checks that the expenses for which the claim is made are in accordance with the terms and conditions of the insurance policy;
• processes the insurer's payment in respect of the claim;
• obtains approval from the insurer prior to processing a claim if more than an agreed amount is claimed; and
• provides regular standard reports to the insurer regarding its service and the claims that it processes. 

In this example, the company is making a taxable supply of an administrative service to the insurer. The service is not considered to be a financial service. If the company is a GST and QST registrant, it will generally be required to collect GST and QST on the payment received from the insurer.

For more information about financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

An insurer may enter into an agreement with a person to have that person provide the insurer with a claims administration service relating to insurance policies the insurer issues. The insurer pays the person a fee for the service. As a rule, such a service provided to an insurer is a taxable supply.

Example

An insurer enters into an agreement with a company to have that company provide the insurer with a claims administration service relating to certain travel insurance policies the insurer supplies. The insurer pays the company a fee for the service.

As part of the service provided, the company:

• receives claim information from a claimant;
• confirms that the claimant was insured under the insurance policy when the expenses were incurred;
• checks that the expenses for which the claim is made are in accordance with the terms and conditions of the insurance policy;
• processes the insurer's payment in respect of the claim;
• obtains approval from the insurer prior to processing a claim if more than an agreed amount is claimed; and
• provides regular standard reports to the insurer regarding its service and the claims that it processes. 

In this example, the company is making a taxable supply of an administrative service to the insurer. The service is not considered to be a financial service. If the company is a GST and QST registrant, it will generally be required to collect GST and QST on the payment received from the insurer.

For more information about financial services, refer to GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

Under certain circumstances, Indians are exempt from paying consumption taxes under the GST and QST systems. However, Métis, Inuit, Non-Status Indians and Indians from the United States are not considered to be Indians for the purposes of this exemption. They must therefore pay GST and QST on taxable goods and services that they purchase (excluding zero-rated goods and services).

Likewise, the exemption from paying consumption taxes that applies to Indian bands or band-empowered entities does not apply to entities that govern or represent Métis, Inuit or Non-Status Indians.

The term "Indian" designates a person registered as such in accordance with the Indian Act. An Indian is not required to live in or maintain a dwelling on a reserve. Indigenous and Northern Affairs Canada (INAC) can issue a Secure Certificate of Indian Status (SCIS) card or a Temporary Confirmation of Registration Document (TCRD) to an Indian. No other identity or membership cards allow an Indian to obtain an exemption from paying consumption taxes.

For more information concerning SCIS, visit the INAC website. To know more about the TCRD, consult GST/HST Notice 264, Sales Made to Indians and Documentary Evidence – Temporary Confirmation of Registration Document, published by the Canada Revenue Agency.

The term "Indian band" designates a band council or a tribal council. The expression “band-empowered entity” designates a legal person, a commission, a council, an association, a society or any other organization that belongs to or is controlled by a band, a tribal council or a group of bands (except a tribal council).

For more information, consult GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians.

Note that vendors registered for the GST and QST that collect neither tax on supplies made to individuals who wrongly claim a tax exemption are still required to remit the GST and QST they should have collected.

The decision rendered by the Supreme Court of Canada in the Daniels case states that Métis and Non-Status Indians are Indians for the purpose of federal Parliament's law making jurisdiction under section 91(24) of the Constitution Act, 1867. However, the tax exemption provided for under section 87 of the Indian Act applies only to Indians, according to the definition of “Indian” in the Indian Act. The definition is not impacted by the decision in the Daniels case, and Revenu Québec agrees with the Canada Revenue Agency that the group of people entitled to the tax exemption remains unchanged. Therefore, Revenu Québec will continue to apply and administer the exemption provided for in the Indian Act in the same way it did before the decision was rendered in the Daniels case.

Under certain circumstances, Indians are exempt from paying consumption taxes under the GST and QST systems. However, Métis, Inuit, Non-Status Indians and Indians from the United States are not considered to be Indians for the purposes of this exemption. They must therefore pay GST and QST on taxable goods and services that they purchase (excluding zero-rated goods and services).

Likewise, the exemption from paying consumption taxes that applies to Indian bands or band-empowered entities does not apply to entities that govern or represent Métis, Inuit or Non-Status Indians.

The term "Indian" designates a person registered as such in accordance with the Indian Act. An Indian is not required to live in or maintain a dwelling on a reserve. Indigenous and Northern Affairs Canada (INAC) can issue a Secure Certificate of Indian Status (SCIS) card or a Temporary Confirmation of Registration Document (TCRD) to an Indian. No other identity or membership cards allow an Indian to obtain an exemption from paying consumption taxes.

For more information concerning SCIS, visit the INAC website. To know more about the TCRD, consult GST/HST Notice 264, Sales Made to Indians and Documentary Evidence – Temporary Confirmation of Registration Document, published by the Canada Revenue Agency.

The term "Indian band" designates a band council or a tribal council. The expression “band-empowered entity” designates a legal person, a commission, a council, an association, a society or any other organization that belongs to or is controlled by a band, a tribal council or a group of bands (except a tribal council).

For more information, consult GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians.

Note that vendors registered for the GST and QST that collect neither tax on supplies made to individuals who wrongly claim a tax exemption are still required to remit the GST and QST they should have collected.

The decision rendered by the Supreme Court of Canada in the Daniels case states that Métis and Non-Status Indians are Indians for the purpose of federal Parliament's law making jurisdiction under section 91(24) of the Constitution Act, 1867. However, the tax exemption provided for under section 87 of the Indian Act applies only to Indians, according to the definition of “Indian” in the Indian Act. The definition is not impacted by the decision in the Daniels case, and Revenu Québec agrees with the Canada Revenue Agency that the group of people entitled to the tax exemption remains unchanged. Therefore, Revenu Québec will continue to apply and administer the exemption provided for in the Indian Act in the same way it did before the decision was rendered in the Daniels case.

Securities dealers and investment dealers can facilitate the distribution of private investments by helping the issuer of a private investment find investors and by carrying out certain tasks, such as making sure that:

• documents are duly completed;
• payments are processed;
• share certificates are issued.

For the purposes of the GST and the QST, investment dealers must first determine whether the supply of services or property is a single supply or multiple supplies. For more information, consult the GST/HST Policy Statement P-077R2, Single and Multiple Supplies.

Supply of a financial service

If it is determined that a single supply is being provided, then the predominant element of that supply must be established to determine the nature of the supply. This determination will be generally based on written agreements, between the person providing the service and the person's client, detailing the actions, responsibilities and obligations of the person in connection with the supply. For more information, consult the GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

To determine whether an investment dealer who is facilitating the distribution of private investments is taking measures to provide a financial service, certain factors must be reviewed, such as:

• the degree of direct involvement and effort of the dealer in the provision of a financial service;
• the time expended by the dealer in the provision of a financial service;
• the degree of reliance of both the issuer and the investor on the dealer in the course of providing a financial service.

Whether or not the service provided is a financial service cannot be determined on the basis of one factor only. For example, a service provided by an investment dealer is not considered to be a measure taken to carry out a financial service only because the investment dealer is the sole intermediary between the issuer and the investor. Furthermore, if the investment dealer provides a preparatory service for the supply of a service that will result in transfer of ownership of a financial instrument, the service provided by the dealer will not be considered a financial service.

Securities dealers and investment dealers can facilitate the distribution of private investments by helping the issuer of a private investment find investors and by carrying out certain tasks, such as making sure that:

• documents are duly completed;
• payments are processed;
• share certificates are issued.

For the purposes of the GST and the QST, investment dealers must first determine whether the supply of services or property is a single supply or multiple supplies. For more information, consult the GST/HST Policy Statement P-077R2, Single and Multiple Supplies.

Supply of a financial service

If it is determined that a single supply is being provided, then the predominant element of that supply must be established to determine the nature of the supply. This determination will be generally based on written agreements, between the person providing the service and the person's client, detailing the actions, responsibilities and obligations of the person in connection with the supply. For more information, consult the GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

To determine whether an investment dealer who is facilitating the distribution of private investments is taking measures to provide a financial service, certain factors must be reviewed, such as:

• the degree of direct involvement and effort of the dealer in the provision of a financial service;
• the time expended by the dealer in the provision of a financial service;
• the degree of reliance of both the issuer and the investor on the dealer in the course of providing a financial service.

Whether or not the service provided is a financial service cannot be determined on the basis of one factor only. For example, a service provided by an investment dealer is not considered to be a measure taken to carry out a financial service only because the investment dealer is the sole intermediary between the issuer and the investor. Furthermore, if the investment dealer provides a preparatory service for the supply of a service that will result in transfer of ownership of a financial instrument, the service provided by the dealer will not be considered a financial service.

Securities dealers and investment dealers can facilitate the distribution of private investments by helping the issuer of a private investment find investors and by carrying out certain tasks, such as making sure that:

• documents are duly completed;
• payments are processed;
• share certificates are issued.

For the purposes of the GST and the QST, investment dealers must first determine whether the supply of services or property is a single supply or multiple supplies. For more information, consult the GST/HST Policy Statement P-077R2, Single and Multiple Supplies.

Supply of a financial service

If it is determined that a single supply is being provided, then the predominant element of that supply must be established to determine the nature of the supply. This determination will be generally based on written agreements, between the person providing the service and the person's client, detailing the actions, responsibilities and obligations of the person in connection with the supply. For more information, consult the GST/HST Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

To determine whether an investment dealer who is facilitating the distribution of private investments is taking measures to provide a financial service, certain factors must be reviewed, such as:

• the degree of direct involvement and effort of the dealer in the provision of a financial service;
• the time expended by the dealer in the provision of a financial service;
• the degree of reliance of both the issuer and the investor on the dealer in the course of providing a financial service.

Whether or not the service provided is a financial service cannot be determined on the basis of one factor only. For example, a service provided by an investment dealer is not considered to be a measure taken to carry out a financial service only because the investment dealer is the sole intermediary between the issuer and the investor. Furthermore, if the investment dealer provides a preparatory service for the supply of a service that will result in transfer of ownership of a financial instrument, the service provided by the dealer will not be considered a financial service.

When selling an automobile, a dealer sometimes enters into an instalment-sale contract with the buyer. When the contract is subsequently transferred to a financial institution, the dealer receives the balance of the selling price plus a premium, also referred to as a “commission.”

For GST and QST purposes, an instalment-sale contract is considered to be a debt security and a financial instrument, since it represents a right to be paid money. When the instalment-sale contract is transferred to a third party such as a financial institution, the third party acquires the right to collect the buyer's subsequent payments. The transfer of this right constitutes a financial service and is therefore exempt from GST and QST.

In general, the commission received by the dealer from the financial institution is part of the consideration received for the transfer of the instalment-sale contract and is therefore exempt from GST and QST, like the transfer of the instalment-sale contract.

Services preparatory to the supply of a financial service

When a dealer receives a commission for helping a client obtain a loan from a third party under a financing contract, it must be determined whether the dealer is taking measures to provide a financial service and, if so, whether this financial service is the predominant element of the supply provided.

For example, the services provided by a dealer constitute services preparatory to the supply of a financial service and are taxable where the dealer:

• provides a loan application to the buyer;
• helps the buyer to complete the application;
• verifies the information entered on the application;
• transmits the application to a financial institution.

In this case, the dealer is required to charge GST and QST on any commission for a referral paid to the dealer by the financial institution.

For more information, refer to Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

When selling an automobile, a dealer sometimes enters into an instalment-sale contract with the buyer. When the contract is subsequently transferred to a financial institution, the dealer receives the balance of the selling price plus a premium, also referred to as a “commission.”

For GST and QST purposes, an instalment-sale contract is considered to be a debt security and a financial instrument, since it represents a right to be paid money. When the instalment-sale contract is transferred to a third party such as a financial institution, the third party acquires the right to collect the buyer's subsequent payments. The transfer of this right constitutes a financial service and is therefore exempt from GST and QST.

In general, the commission received by the dealer from the financial institution is part of the consideration received for the transfer of the instalment-sale contract and is therefore exempt from GST and QST, like the transfer of the instalment-sale contract.

Services preparatory to the supply of a financial service

When a dealer receives a commission for helping a client obtain a loan from a third party under a financing contract, it must be determined whether the dealer is taking measures to provide a financial service and, if so, whether this financial service is the predominant element of the supply provided.

For example, the services provided by a dealer constitute services preparatory to the supply of a financial service and are taxable where the dealer:

• provides a loan application to the buyer;
• helps the buyer to complete the application;
• verifies the information entered on the application;
• transmits the application to a financial institution.

In this case, the dealer is required to charge GST and QST on any commission for a referral paid to the dealer by the financial institution.

For more information, refer to Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

When selling an automobile, a dealer sometimes enters into an instalment-sale contract with the buyer. When the contract is subsequently transferred to a financial institution, the dealer receives the balance of the selling price plus a premium, also referred to as a “commission.”

For GST and QST purposes, an instalment-sale contract is considered to be a debt security and a financial instrument, since it represents a right to be paid money. When the instalment-sale contract is transferred to a third party such as a financial institution, the third party acquires the right to collect the buyer's subsequent payments. The transfer of this right constitutes a financial service and is therefore exempt from GST and QST.

In general, the commission received by the dealer from the financial institution is part of the consideration received for the transfer of the instalment-sale contract and is therefore exempt from GST and QST, like the transfer of the instalment-sale contract.

Services preparatory to the supply of a financial service

When a dealer receives a commission for helping a client obtain a loan from a third party under a financing contract, it must be determined whether the dealer is taking measures to provide a financial service and, if so, whether this financial service is the predominant element of the supply provided.

For example, the services provided by a dealer constitute services preparatory to the supply of a financial service and are taxable where the dealer:

• provides a loan application to the buyer;
• helps the buyer to complete the application;
• verifies the information entered on the application;
• transmits the application to a financial institution.

In this case, the dealer is required to charge GST and QST on any commission for a referral paid to the dealer by the financial institution.

For more information, refer to Technical Information Bulletin B-105, Changes to the Definition of Financial Service.

Acupuncture services provided to an individual by an acupuncture practitioner after February 11, 2014, are GST- and QST-exempt.

Acupuncture services

For the purposes of the GST and QST, an acupuncture service is a service that involves the stimulation of specific pressure points on the skin, mucous membranes or subcutaneous tissues of the human body and other therapeutic techniques to:

• promote, maintain or restore health;
• prevent a disorder or disease; or
• alleviate pain.

An acupuncture service can include assessments, acupuncture treatments (needle, electro, laser and other modern modalities), and acupressure (involving heat, laser or needles). An acupuncture service does not, however, include administrative duties, research activities and teaching.

If an acupuncture practitioner renders a service that is not an acupuncture service, or renders a service that is beyond his or her scope of practice, GST and QST will apply, unless the service is otherwise exempt or zero-rated (taxable at the rate of 0%). Registrants must collect GST and QST. Services rendered can include services that are a form of alternative medicine, such as:

• Bowen therapy;
• ear candling;
• Hakomi therapy; and
• herbal therapy.

When in doubt, an acupuncture practitioner must refer to his or her professional order, professional association or provincial legislation to determine whether the service is within the scope of practice for an acupuncturist.

Services rendered to an individual

Only services rendered to an individual within a practitioner-patient relationship are GST- and QST-exempt. A practitioner-patient relationship means that the practitioner is a direct care provider of the patient and that a relationship involving personal interaction between the practitioner and the patient has been established.

Practitioner of acupuncture

For the purpose of the application of the GST and QST, an acupuncture practitioner is a person who practices the profession of acupuncturist and meets the following conditions:

• is licenced or certified to practice the profession of acupuncturist by a provincially established regulatory body if the acupuncture service is rendered in a province that regulates the profession; or
• has the qualifications equivalent to those necessary to be licenced or certified in another province if the acupuncture service is rendered in a province that does not regulate the profession.

In Québec, for the purpose of GST and QST, an acupuncture practitioner is a person who holds a permit issued by l'Ordre des acupuncteurs du Québec.

Other conditions

In order for an acupuncture service to be GST- and QST-exempt, it must be a qualifying healthcare service rendered for any of the following purposes:

• maintaining health;
• preventing disease;
• treating, relieving or remedying an injury, an illness, a disorder or a disability;
• assisting (other than financially) an individual in coping with an injury, an illness, a disorder or a disability; or
• providing palliative healthcare.

In addition, an acupuncture service, and any related services or property, must be provided for medical or reconstructive purposes only, and not for cosmetic purposes.

Acupuncture services that do not qualify as healthcare services, or are cosmetic, do not qualify for exemption and are generally subject to GST and QST.

For more information on qualifying healthcare services, refer to Notice 286, Draft GST/HST Policy Statement: Qualifying Health Care Supplies and the Application of Section 1.2 of Part II of Schedule V to the Excise Tax Act to the Supply of Medical Examinations, Reports and Certificates.

Other exemptions

A service that is typically rendered by an acupuncturist may be rendered by another healthcare professional licenced within the scope of practice for his or her principal profession to perform acupuncture as an adjunct treatment if such an exemption is provided for by law. For example, doctors in Québec may perform acupuncture services within the scope of their practice. In such a case, since doctors' services are GST- and QST-exempt, this service is exempt.

Acupuncture services provided to an individual by an acupuncture practitioner after February 11, 2014, are GST- and QST-exempt.

Acupuncture services

For the purposes of the GST and QST, an acupuncture service is a service that involves the stimulation of specific pressure points on the skin, mucous membranes or subcutaneous tissues of the human body and other therapeutic techniques to:

• promote, maintain or restore health;
• prevent a disorder or disease; or
• alleviate pain.

An acupuncture service can include assessments, acupuncture treatments (needle, electro, laser and other modern modalities), and acupressure (involving heat, laser or needles). An acupuncture service does not, however, include administrative duties, research activities and teaching.

If an acupuncture practitioner renders a service that is not an acupuncture service, or renders a service that is beyond his or her scope of practice, GST and QST will apply, unless the service is otherwise exempt or zero-rated (taxable at the rate of 0%). Registrants must collect GST and QST. Services rendered can include services that are a form of alternative medicine, such as:

• Bowen therapy;
• ear candling;
• Hakomi therapy; and
• herbal therapy.

When in doubt, an acupuncture practitioner must refer to his or her professional order, professional association or provincial legislation to determine whether the service is within the scope of practice for an acupuncturist.

Services rendered to an individual

Only services rendered to an individual within a practitioner-patient relationship are GST- and QST-exempt. A practitioner-patient relationship means that the practitioner is a direct care provider of the patient and that a relationship involving personal interaction between the practitioner and the patient has been established.

Practitioner of acupuncture

For the purpose of the application of the GST and QST, an acupuncture practitioner is a person who practices the profession of acupuncturist and meets the following conditions:

• is licenced or certified to practice the profession of acupuncturist by a provincially established regulatory body if the acupuncture service is rendered in a province that regulates the profession; or
• has the qualifications equivalent to those necessary to be licenced or certified in another province if the acupuncture service is rendered in a province that does not regulate the profession.

In Québec, for the purpose of GST and QST, an acupuncture practitioner is a person who holds a permit issued by l'Ordre des acupuncteurs du Québec.

Other conditions

In order for an acupuncture service to be GST- and QST-exempt, it must be a qualifying healthcare service rendered for any of the following purposes:

• maintaining health;
• preventing disease;
• treating, relieving or remedying an injury, an illness, a disorder or a disability;
• assisting (other than financially) an individual in coping with an injury, an illness, a disorder or a disability; or
• providing palliative healthcare.

In addition, an acupuncture service, and any related services or property, must be provided for medical or reconstructive purposes only, and not for cosmetic purposes.

Acupuncture services that do not qualify as healthcare services, or are cosmetic, do not qualify for exemption and are generally subject to GST and QST.

For more information on qualifying healthcare services, refer to Notice 286, Draft GST/HST Policy Statement: Qualifying Health Care Supplies and the Application of Section 1.2 of Part II of Schedule V to the Excise Tax Act to the Supply of Medical Examinations, Reports and Certificates.

Other exemptions

A service that is typically rendered by an acupuncturist may be rendered by another healthcare professional licenced within the scope of practice for his or her principal profession to perform acupuncture as an adjunct treatment if such an exemption is provided for by law. For example, doctors in Québec may perform acupuncture services within the scope of their practice. In such a case, since doctors' services are GST- and QST-exempt, this service is exempt.

Acupuncture services provided to an individual by an acupuncture practitioner after February 11, 2014, are GST- and QST-exempt.

Acupuncture services

For the purposes of the GST and QST, an acupuncture service is a service that involves the stimulation of specific pressure points on the skin, mucous membranes or subcutaneous tissues of the human body and other therapeutic techniques to:

• promote, maintain or restore health;
• prevent a disorder or disease; or
• alleviate pain.

An acupuncture service can include assessments, acupuncture treatments (needle, electro, laser and other modern modalities), and acupressure (involving heat, laser or needles). An acupuncture service does not, however, include administrative duties, research activities and teaching.

If an acupuncture practitioner renders a service that is not an acupuncture service, or renders a service that is beyond his or her scope of practice, GST and QST will apply, unless the service is otherwise exempt or zero-rated (taxable at the rate of 0%). Registrants must collect GST and QST. Services rendered can include services that are a form of alternative medicine, such as:

• Bowen therapy;
• ear candling;
• Hakomi therapy; and
• herbal therapy.

When in doubt, an acupuncture practitioner must refer to his or her professional order, professional association or provincial legislation to determine whether the service is within the scope of practice for an acupuncturist.

Services rendered to an individual

Only services rendered to an individual within a practitioner-patient relationship are GST- and QST-exempt. A practitioner-patient relationship means that the practitioner is a direct care provider of the patient and that a relationship involving personal interaction between the practitioner and the patient has been established.

Practitioner of acupuncture

For the purpose of the application of the GST and QST, an acupuncture practitioner is a person who practices the profession of acupuncturist and meets the following conditions:

• is licenced or certified to practice the profession of acupuncturist by a provincially established regulatory body if the acupuncture service is rendered in a province that regulates the profession; or
• has the qualifications equivalent to those necessary to be licenced or certified in another province if the acupuncture service is rendered in a province that does not regulate the profession.

In Québec, for the purpose of GST and QST, an acupuncture practitioner is a person who holds a permit issued by l'Ordre des acupuncteurs du Québec.

Other conditions

In order for an acupuncture service to be GST- and QST-exempt, it must be a qualifying healthcare service rendered for any of the following purposes:

• maintaining health;
• preventing disease;
• treating, relieving or remedying an injury, an illness, a disorder or a disability;
• assisting (other than financially) an individual in coping with an injury, an illness, a disorder or a disability; or
• providing palliative healthcare.

In addition, an acupuncture service, and any related services or property, must be provided for medical or reconstructive purposes only, and not for cosmetic purposes.

Acupuncture services that do not qualify as healthcare services, or are cosmetic, do not qualify for exemption and are generally subject to GST and QST.

For more information on qualifying healthcare services, refer to Notice 286, Draft GST/HST Policy Statement: Qualifying Health Care Supplies and the Application of Section 1.2 of Part II of Schedule V to the Excise Tax Act to the Supply of Medical Examinations, Reports and Certificates.

Other exemptions

A service that is typically rendered by an acupuncturist may be rendered by another healthcare professional licenced within the scope of practice for his or her principal profession to perform acupuncture as an adjunct treatment if such an exemption is provided for by law. For example, doctors in Québec may perform acupuncture services within the scope of their practice. In such a case, since doctors' services are GST- and QST-exempt, this service is exempt.

Did you know you can use the following online services to verify that a business billing you QST and GST is a QST and GST/HST registrant?

• Validation of a QST Registration Number (Revenu Québec) 
• Confirming a GST/HST account number (Canada Revenue Agency)

Your requests for input tax credits and input tax refunds could be refused if the business is not a registrant.