Most health care services from licensed practitioners are GST-exempt. That sounds simple, but it changes what you charge, what you can recover and how a clinic is set up.
Which health services are GST-exempt?
Consultative, diagnostic and treatment services from practitioners such as physicians and dentists are generally exempt from GST. Exempt services carry no GST, so there is usually nothing to collect on them.
Which services are taxable?
Cosmetic services, such as teeth whitening, are generally taxable unless they are medically required. Clinics that offer both kinds of service are making a mix of exempt and taxable supplies.
Can a clinic claim input tax credits?
On costs used for exempt services you generally cannot claim input tax credits, so the GST paid on rent, equipment and supplies becomes a business cost. A clinic with taxable services too can claim credits only to the extent costs relate to the taxable side.
What changed for dentists in 2025?
The CRA revoked its long-standing administrative arrangement with the Canadian Dental Association. For fiscal years starting on or after January 1, 2025, dentists claim credits based on the actual use of each cost, and no credit is allowed when substantially all (90% or more) of a cost is used for exempt activities (GST/HST Notice 339).
What about associates paying the clinic?
When income is shared between practitioners and a clinic, it can be unclear whether payments are for exempt health care services or for taxable rent and management services. The CRA looks closely at this area, so the contracts deserve a review.
What about BC PST?
BC PST is a separate tax with its own rules for purchases and registration, so review it alongside GST.
How HJ Wu & Company Inc. helps
The Vancouver CPA firm handles this work every day. See healthcare accounting or contact the firm to book a consultation.
Official sources
Reviewed October 30, 2026. This is general information, not legal or tax advice. Rules and rates change, so confirm current requirements with the official sources above and speak to a CPA about your situation.
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Yes. HJ Wu & Company Inc. handles the bookkeeping, payroll, tax preparation and financial reporting for healthcare practitioners and clinics, so doctors and dental professionals can spend their time on patients instead of spreadsheets. The firm keeps your records compliant, organized and easy to understand. Contact HJ Wu & Company Inc. to take the number-crunching off your plate.
Yes. HJ Wu & Company Inc. can register your business for GST and PST, calculate and report what you owe, and file your returns, including GST filings for not-for-profit organizations. It's a good option at any stage of a business. Contact HJ Wu & Company Inc. and get your sales tax sorted.
It starts with an initial consultation, then a needs assessment, and then HJ Wu & Company Inc. builds a plan around your goals. Cost depends on what you need, whether that's a one-time tax return or ongoing bookkeeping and payroll, so the firm quotes after learning about your situation. Call 604-636-1862 or email inquiry@hjwucpa.com to book your consultation.