Tax-exempt virtual supports
Petitioners ask the Minister of Finance to classify virtual disability support services as tax-exempt and enable organizations to offer them tax-free. The government responds that some virtual supports are already recognized in existing tax measures.
Why we would sign this petition
- Makes virtual supports tax-free, lowering costs for Canadians with disabilities and improving access to essential services.
- Updates tax rules to reflect the shift to online service delivery, reducing disparities between in-person and virtual supports.
- Allows organizations to offer tax-free virtual programs, likely increasing availability, affordability and uptake of support services.
Why we wouldn’t sign this petition
- Defining which virtual services qualify could be complex and burdensome for taxpayers and administrators.
- Existing credits and GST/HST exemptions already cover some virtual services, so the change may be redundant.
- Wider exemptions could reduce tax revenue or create incentives for reclassification of services, requiring budget or policy trade-offs.
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 We, the undersigned Citizens of Canada, draw the attention of the Minister of Finance to the following: WHEREAS: Since the COVID-19 pandemic, there has been an emergence of live virtual support services and programs available to Canadians with disabilities; These online services are financially more affordable, flexible, and accessible to Canadians with disabilities compared to similar in-person services and programs; Disabled Canadians benefit from these virtual programs that connect them with peers, foster meaningful connections, and access various opportunities for learning, skill development, inclusion and independence; Despite this positive shift to accessible options, the Canadian Tax Code has not yet caught up with these new online support services for disabled Canadians; The current tax code provides tax exemptions to Canadians with disabilities for "services rendered principally at the location of an establishment" but not for similar services provided online; Consequently, disabled Canadians who access virtual support services and programs are still subjected to taxes on these essential and life enhancing services; and As a result, disabled Canadians accessing vital virtual support services and programs face increased financial burdens that could be alleviated if these online supports were recognized and exempted from taxation. THEREFORE, your petitioners call upon the Minister of Finance to: 1. Revise the existing criteria for tax exemptions on support services for disabled Canadians to encompass support services and programs provided virtually; and 2. Establish a new standard for tax exemptions that would enable organizations to offer tax-free virtual support services and programs to disabled Canadians, facilitating increased accessibility and support for these Canadians in their daily lives.
Government response
Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne The Government of Canada understands that living with a disability can have a significant impact on the lives of those affected and their loved ones. That is why the government provides a range of supports to Canadians with disabilities and their families, including through tax measures that recognize virtual services and programs that are available to persons with disabilities. The Medical Expense Tax Credit (METC) recognizes above-average medical costs, including disability-related expenses on an individual’s ability to pay tax. For 2026, the METC provides tax relief in recognition of eligible medical and disability-related expenses, which are listed in the Income Tax Act and Regulations, in excess of the lesser of $2,890 and 3 percent of the claimant’s net income. Taxpayers may pool and claim the medical expenses that they or their spouses or common-law partners and minor children incur and there is no upper limit on the amount of eligible expenses that may be claimed. Virtual medical services provided to a patient by a medical practitioner authorized to practice in the jurisdiction where the service is rendered are generally eligible under the METC. The Disability Supports Deduction allows individuals who have an impairment in physical or mental functions to deduct certain expenses that enable them to earn business or employment income or to attend school. Generally, the deduction is limited to the lesser of the amounts paid for eligible expenses and the taxpayer’s earned income. Students are additionally entitled to claim the deduction against up to $15,000 of non-earned income, subject to the length of their educational program. In general, eligible individuals may claim expenses related to services, including those provided virtually, such as tutoring, note taking, and job coaching, provided all eligibility criteria are met. The Tuition Tax Credit recognizes the costs of enrolling in qualifying educational programs or courses, where students can claim a non-refundable tax credit at the lowest personal income tax rate on tuition fees paid to designated educational institutions. The Canada Training Credit addresses barriers to professional development for working Canadians, as it allows qualifying workers between the ages of 25 to 64 to accumulate a credit balance of $250 per year, up to a lifetime limit of $5,000, which can be used to support qualifying courses or training. Tuition fees paid for online attendance and correspondence courses may be eligible for both these measures if taken with an educational institution in Canada. The supply of most health services is exempt from the Goods and Services Tax/Harmonized Sales Tax (GST/HST) regardless of whether they are provided in person or virtually. Health services that are exempt from the GST/HST include, but are not limited to, speech-language pathology services, psychological services, psychotherapy services and counselling therapy services. The list of tax-exempt health services is set out in the GST/HST legislation. In line with longstanding policy, a GST/HST exemption is also provided for certain personal care services only when provided at the establishment of the supplier. These involve supplies of care, supervision and a place of residence for persons with a disability (e.g., a group home) or of care and supervision at an establishment to individuals with limited physical or mental capacity for self-supervision and self-care due to an infirmity or disability (e.g., respite care). Home care services provided by a government or a municipality to persons with a disability are exempt from the GST/HST where they are provided in the individual’s place of residence. These are supplies that cannot reasonably be rendered virtually, as they involve providing physical services such as bathing, feeding and assistance with dressing to individuals who require assistance. The Government of Canada is committed to reducing the barriers that limit persons with disabilities from full participation in our society and economy and to creating a more inclusive Canada where everyone has the chance to thrive.