We applaud the federal government for exempting GST/HST on services provided by acupuncturists. Having patients pay taxes on their treatment of choice is not agreeable with the acupuncturists or their patients, and we are glad that the federal government agree.

Thanks to our combined efforts as part of the Canadian Coalition of Acupuncture and TCM Associations (CCTAA), we have succeeded in making acupuncture performed by acupuncturists and TCM practitioners exempted from GST/HST! The CCTAA was formed by the joint efforts of Acupuncture and TCM associations from across Canada.

The CCTAA would like to acknowledge everyone who contacted their MPs over the past few weeks ahead of this historic announcement by Minster of Finance Jim Flaherty which occurred on Feb. 11, 2014. In particular, this could not have happened without the 30,000 signature petition collected over the years by members of the Association des Acupuncteurs du Quebec (AAQ) which proved to our Federal Government the significant improvements to patient choice and access that this GST/HST exemption would allow. 

Feb. 11, 2014, Parliament Hill – Stakeholders Lock-Up
As one of the stakeholders in regards to the GST/HST-Exemption Campaign, CMAAC was invited by the Department of Finance to attend the Stakeholders’ Lock-up on Feb. 11, 2014. This event allowed us to have access to the budget before it was tabled to the House of Commons. Since the event took place at the Parliament Hill in Ottawa, Ontario, it was meaningful that one of our Ontario representatives attended this event – not just on behalf of the CMAAC but also for our sister organizations and fellow colleagues across Canada. Thanks to our member, Connie Siedule, of Ottawa who was our representative there.  She rescheduled her working hours to attend and provided us a report with these following key points :

• The exemption was tabled and introduced with Budget 2014 and is expected to pass into law without issue. Technically the exemption is effective Feb. 12, 2014 however, we are advised to continue to collect GST/HST until we have confirmation of the bill formally passing. We also expect further instruction from the Canada Revenue Agency to be posted to its website any day now.
• With regards to TCM practitioners and the exemption, we were advised to pay attention to the specific wording of the exemption which refers to ‘professional services by acupuncturists’.  This means that TCM services (e.g. herbs) are not exempt – it only applies to acupuncture and acupuncturists.  Also we will have to see how the Canada Revenue Agency defines ‘acupuncturist’ which has a specific meaning as a protected title in provinces with TCM/A regulation.  Your provincial College, where applicable, may also provide information updates along these lines.

The proposed GST/HST exemption on acupuncture can be found on the Government of Canada website  ‘Annex 2 – Tax Measures: Supplementary Information, Notice of Ways and Means Motion and Draft Amendments to Various GST/HST Regulations’(under Sales and Excise Tax Measure > scroll 3/4 down the page).

We understand there are naturally going to be a lot of questions from our members but we ask that you please wait patiently; our much-needed answers are not yet available but will come in due time. 

CMAAC