mtabc newsletter

HST and Registered Massage Therapy Treatments

Posted on: Jun 29, 2010

Dear Members,

As you know the July 1, 2010 implementation date for the HST is quickly approaching.

RMTs in the province of BC are required to charge and remit the HST. The GST no longer exists.

The MTABC has expressed its concerns regarding the anomaly that RMTs face as the only health care practioners required to collect the HST from their patients. In addition, you and your patients have sent in over 10,000 letters to the Premier and Ministers of Finance and Health.

This email is to let you know of the information that we have acquired to date, regarding the HST and the billing of the HST. Please know that it has been difficult to obtain direct and fulsome answers to the many questions that have arisen. We will keep you updated as we obtain more information.

If you do not currently collect the GST because you make under $30,000 then you are not subject to the HST. The rules regarding the $30,000 threshold for the GST are the same for the HST.

Your current GST number is the same number you will need for the HST. You do not need to call the Canada Revenue Agency (CRA) to get a new HST number. The HST number should be on all receipts and the HST should be itemized. Please note, the MTABC Recommended Fee Guide does not include the HST.

MSP Premium Assistance Patients are not required to pay the HST on the Government paid portion of their treatment. The GST Technical Unit says that the CRA Memorandum 300-4-2 is still in effect and will remain in effect after July 1. They said that the provincial bulletin mentioned below only applies to taxable services and massage therapy is not a taxable service if it’s paid by the provincial health care plan.

The memorandum states:

Provincially Insured Property or Services

16. Supplies of any property or services that are insured by a province or territory under its health care plan are exempt to the extent that the amount charged for the supplies of property or services are paid or reimbursed by the provincial or territorial health insurance plan.

The HST is now applicable and must be charged to Worksafe BC patients.

Worksafe BC said: "HST: If you believe your goods or services are HST applicable please add the appropriate tax to the contracted massage therapy fee schedule. If invoicing through HIBC / teleplan, please add the contracted rate and tax into one total for each date of service line item."

In other words, for Worksafe BC, add the 12% HST to the fee item being charged. When billing INCLUDE THE HST IN THE AMOUNT ON THE FORM, NOT SEPARATELY. The Worksafe BC forms billed either electronically or on paper do not have a place for the HST to go so they have informed us that it’s included in the amount (to the right of the fee code box on the form).

Third Party Insured Plans:

For other insurer plans, not including Federal plans such as RCMP or DVA; The HST replaces the GST (but at the higher 12% rate). Many of these plans have either a per visit limit or annual limit and that will not change. Patients will be required to cover costs above the insurers' limits. In other words, the insurance coverage limits include the HST. The same coverage is in effect whether the plan is full or partial.

For Department of Veterans Affairs (DVA), they still cover $70 and if you are registered to collect the HST then you will bill $70 plus HST ($8.40) for a total of $78.40. The HST should be on a separate line and your HST number should be on the receipt.

For RCMP, they still get 30 min units charged at $45 each. Two units can be billed together for a total of $90 not including tax. Add the tax ($10.80) for a total of $100.80. Show the tax separately and include your HST number.

For ICBC, the HST is applicable so the current rate is $23 then add HST ($2.76) for a total of $25.76.

If you are registered with CRA for the Quick Method of remitting GST the following applies to you:

Until July 1st, the Quick Method rate is 3.6%. This is the rate to use when calculating your remittance for the second quarter of 2010 (April, May and June) that is due by the end of July.

As of July 1st the Quick Method rate for HST has not yet been determined by CRA. We will let you know what the rate is as soon as we know. The earliest you will need the new rate is in October 2010 when calculating your remittance for the third quarter (July, August and September).

We are disappointed that the Government has not listened to our concerns regarding the implementation of the HST.

We will continue to press government for clarity on this issue and we will keep you informed.