Do lawyers, accountants, and consultants in Ontario have to charge HST?
Yes. Professional services — including legal services, accounting, consulting, engineering, architecture, and most similar professional work — are taxable supplies for HST purposes in Ontario. If you provide these services and exceed the $30,000 small-supplier threshold, you must register for HST and charge 13% on your fees.
Unlike some other sectors, professional services have no broad HST exemption. The exemption for health care is narrow (it covers certain regulated health practitioners providing health care services, not all health-related professionals). Similarly, legal aid plans may have specific rules, but private legal services are fully taxable.
One common misunderstanding is that licensed professionals are somehow exempt because of their regulatory status. Registration with a governing body does not create an HST exemption. If you are a sole practitioner or run a professional corporation and your revenues cross the threshold, registration is mandatory. Even below the threshold, voluntary registration is often worthwhile because it allows you to recover HST paid on your overhead.
Key takeaways
- Legal, accounting, and most consulting services are taxable at 13% HST in Ontario.
- No broad exemption applies simply because you are a regulated professional.
- Cross the $30,000 threshold and registration is mandatory.
- Voluntary registration below the threshold lets you recover HST on expenses.