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Proposed GST/HST Reforms: Empowering Psychotherapists and Boosting Joint Ventures - My Vat Calculator

Proposed GST/HST Reforms: Empowering Psychotherapists and Boosting Joint Ventures

"Proposed FES Initiative Seeks to Exempt Psychotherapists and Counseling Therapists from GST/HST"

The Federation of European Societies (FES) has recently put forward a proposal to eliminate the Goods and Services Tax/Harmonized Sales Tax (GST/HST) from the services provided by psychotherapists and counseling therapists. This move aims to alleviate the financial burden on individuals seeking mental health support and make these services more accessible to all.

Under the proposed new rules, participants in a joint venture would have the option to elect one participant who would be responsible for accounting for GST/HST on all purchases and sales. This streamlined approach would simplify the tax obligations for those involved in joint ventures, making it easier for them to navigate the complexities of the tax system.

To qualify for the joint venture election, all or substantially all of the joint venture activities must be commercial activities, and all electing participants must be registered for GST/HST. This ensures that the benefits of the proposed rules are limited to those actively engaged in commercial ventures and who are already compliant with tax regulations.

In addition to the joint venture election, the proposed rules also include measures for tax accounting and determining net tax obligations within a joint venture. These measures aim to provide clarity and consistency in how taxes are calculated and paid within the context of a joint venture, further simplifying the process for participants.

The Department of Finance has released draft legislative proposals for public consultation, signaling the government’s commitment to gathering feedback and considering different perspectives before finalizing the rules. This consultative approach ensures that the proposed changes take into account the needs and concerns of various stakeholders, including individuals in need of mental health services, psychotherapists, counseling therapists, and other professionals in the field.

Once the draft legislative proposals receive Royal Assent, the new rules are expected to take effect. This timeline demonstrates the government’s commitment to expediting the implementation of these changes, recognizing the urgency and importance of making mental health services more affordable and accessible.

The Department of Finance has invited feedback on the coming-into-force and transitional considerations until March 15, 2024. This provides an opportunity for individuals and organizations to contribute their insights and suggestions, ensuring that the final rules reflect the diverse perspectives and expertise within the mental health community.

The proposal put forward by the FES and the subsequent draft legislative proposals from the Department of Finance are significant steps towards addressing the financial barriers that often prevent individuals from seeking the mental health support they need. By removing the GST/HST from psychotherapists’ and counseling therapists’ services, the government aims to make these services more affordable and accessible, ultimately improving the mental well-being of individuals across the country.

In conclusion, the proposed changes to remove the GST/HST from psychotherapists’ and counseling therapists’ services represent a positive development in the field of mental health. The joint venture election and accompanying measures for tax accounting and determining net tax obligations aim to simplify the tax obligations for those involved in joint ventures, making it easier for them to comply with tax regulations. The Department of Finance’s commitment to public consultation ensures that the final rules take into account the needs and concerns of various stakeholders. By making mental health services more affordable and accessible, these changes have the potential to significantly improve the well-being of individuals in need of support.

Barry Caldwell

Barry Caldwell

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