Exempt massage therapy from GST/HST
Petitioners ask the Minister of Finance to recognize massage therapy in Schedule V and exempt its services from GST/HST nationwide. The government responds that a formal exemption request is under review.
Why we would sign this petition
- Exemption would lower out-of-pocket costs, making massage therapy more affordable and accessible for those using it for health, recovery, or wellbeing.
- Recognizing massage therapy in Schedule V would align its tax treatment with other regulated health professions and reduce perceived inequity among practitioners.
- A national GST/HST exemption would simplify billing and encourage broader use of massage therapy as a recognized health service.
Why we wouldn’t sign this petition
- Exempting services reduces the federal tax base and may require higher taxes or spending cuts elsewhere to compensate.
- The government links exemptions to provincial coverage and regulation; seeking provincial coverage or broader regulation may be a more effective route.
- Tax-exempt suppliers cannot claim input tax credits, which could shift costs to providers and affect service availability or prices.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.
Official petition
Petition to the Minister of Finance Whereas: Massage therapy plays a vital role in promoting physical health, mental well-being, and injury recovery for Canadians; Massage therapy is not recognized in the list of professional services rendered by health practitioners in the Excise Tax Act; Canadians are charged HST/GST on massage therapy services; HST/GST fees create an impression of inequality between massage therapists and other health professionals; and Removal of HST/GST on massage therapy services would improve the accessibility and affordability of massage therapy services for Canadians. We, the undersigned, citizens and residents of Canada, call upon the Minister of Finance to: 1. Include the practice of massage therapy in the definition of practitioner within Schedule V of Part II of the Excise Tax Act; 2. Add massage therapy services to the list of professional services rendered by practitioners under section 7 of Part II, Schedule V of the Excise Tax Act; and 3. Exempt massage therapy services in Canada from HST/GST under the Excise Tax Act.
Government response
Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne The Goods and Services Tax/Harmonized Sales Tax (GST/HST) applies to a broad base of goods and services with only limited exceptions, which include basic groceries, residential rents, certain medical devices, prescription drugs and basic health care services. Applying the GST/HST to a broad base of goods and services makes the tax system more efficient and simpler, and helps keep the tax rate lower. The policy underlying the GST/HST treatment of the health care sector is that basic health care services are tax-exempt. In determining what constitutes a basic health care service, the approach that the Government of Canada has taken is to refer to the provinces and territories, given their major role in delivering health care. In this regard, if a service is covered by the public health insurance program in a given province or territory, the GST/HST legislation exempts the service in that province or territory. In addition, certain criteria have been developed for deciding whether services of recognized health practitioners should be tax-exempt in all provinces and territories. Under these criteria: if a service is covered by the public health insurance program of two or more provinces or territories, it may be exempted in all provinces and territories; and if a profession is regulated as a health profession by at least five provinces or territories, the services of that profession may be exempted in all provinces and territories. Health care services are not automatically added to the list of exempt health care services. A formal request to exempt the service must first be made to the Minister of Finance by the health profession providing the service. The Department of Finance Canada will then review the request to see whether the health profession meets the exemption criteria. If the exemption criteria are met, the Department will then consult with the relevant provincial and territorial associations of the profession to ensure that there is widespread support for the GST/HST exemption. Suppliers of tax-exempt services do not charge GST/HST, but are not eligible to claim input tax credits to recover the GST/HST paid on their inputs. It is understood that massage therapy is now regulated in five provinces. A formal request to exempt the services of registered massage therapists has been received and is being reviewed by the Department. The government is continually reviewing the tax system to ensure it is both effective and efficient and will continue to do so.