Do medical or dental practices in Ontario need to register for HST?

Most core health-care services provided by licensed practitioners in Ontario are exempt supplies under the Excise Tax Act. This means that physicians, dentists, nurses, and certain other regulated health professionals do not charge HST on their primary health-care services, and because those services are exempt, they generally cannot claim input tax credits on their practice expenses either.

However, many practitioners also provide services that are not exempt health care. Cosmetic procedures that are not medically necessary, teeth whitening, laser hair removal, and certain elective services are taxable. If a practice provides both exempt and taxable services, it may need to register (once taxable revenues cross $30,000) and then allocate input tax credits between the two types of activities.

Additionally, practitioners who sell products — nutritional supplements, medical devices, dental appliances — may have taxable supply revenues from those sales. The interplay between exempt professional services and taxable ancillary activities makes health-sector HST analysis particularly nuanced. A tax professional familiar with health-care HST rules is essential for practices with mixed revenue streams.