For Registered Social Workers in Private Practice
GST Exemption Interpretation REVISED July 2016: Clinical social work services are not subject to GST.
Clinical social work services are exempt from GST as healthcare services, provided they are rendered within a professional-client relationship between the social worker and the individual to whom the service is rendered. The exemption does not, however, cover services provided by a social worker to another professional, such as another social worker, in relation to a client of the other professional, unless the services are rendered to the client in the course of a professional-client relationship with the service provider.
Clinical services provided by registered social workers can be claimed as a medical expense on income tax. BCASW suggests using the term for clinical social work services on the receipt.
History of GST Exemption:
NEWS RELEASE Ottawa, October 6, 2003
A victory for the social work profession!
The Canadian Association of Social Workers (CASW) is pleased to announce that on October 3, 2003 the Federal Government tabled in the House of Commons proposed legislative amendments to include a new GST exemption for health-related services provided by social workers.
In a news release Finance Canada states, “This measure, developed in consultation with social worker representatives, will ensure that social workers in private practice will not be required to charge GST/HST in respect of the health-related services they render to individuals.”
The official backgrounder document explains the Federal Government’s decision by saying, “Social workers provide a broad spectrum of services in both institutional and private settings. A growing number of social workers are specializing in health-related services, such as the assessment and treatment of eating disorders and drug dependencies. In recognition of this, the practice of social work is currently regulated as a health care profession by the governments of five provinces, which satisfies the policy criteria for inclusion of a particular health care service on the list of those that are exempt from the GST/HST in all provinces. The proposed amendment exempts social workers’ services of counselling individuals for the prevention or treatment of physical or mental disorders or to assist afflicted individuals or their caregivers in coping with such conditions.
“The vast majority of social workers’ services are provided by government organizations or in institutional settings where there is no separate fee to the individual. However, for the increasing number of social workers who are working in private practice, the proposed exemption ensures that they are not required to charge GST/HST in respect of the health services they render to individuals.”
Promotion of the Profession of Social Workers as providers of mental health services
Adding Further Value to Employee Assistance Plans can be downloaded to give to decision-makers to promote the inclusion of social workers as providers of service on employee benefit plans.
CASW Private Practice Portal
As a member of BCASW you have access to CASW resources. There is a wealth of information to help social workers begin, grow, diversify, and even close a private practice. This portal is an express lane to the information every RSW private practitioner needs. It organizes content gleaned from reliable provincial, national, and international sources.
The content is broken down into sections, including:
· How to get started · Minimizing risk
· Defining your services
· Promoting your services
· Delivering services
· Generating additional income
· Health and wellness
· Professional development
· Closing your practice
Small Business BC provides useful information, training, and networking opportunities for BC enterprises. Click here for information on registering new businesses.
Women’s Enterprise Centre offers resources for businesswomen and entrepreneurs in BC (those already in business and those starting) including information, training courses and startup loans.