June 25, 2025 

Dear Member, 

The team at CACFT has been working diligently to advocate for RMFTs in unregulated provinces to be considered exempt from GST/HST. We are excited to share several important updates regarding your most pressing questions about tax-free therapy for regulated titles and Registered Marriage and Family Therapists (RMFT). Please review the information thoroughly. 

GST Exemption Confirmed for RMFTs in Unregulated Provinces

The Canada Revenue Agency (CRA) has officially confirmed that Registered Marriage and Family Therapists (in good standing) are exempt from collecting GST/HST on their counselling therapy and psychotherapy services in provinces where the profession is not regulated. 

Key Highlights from the CRA Confirmation 

1. The CRA has accepted the letter provided by the College of Registered Psychotherapists of Ontario (CRPO), confirming that RMFTs meet substantial equivalency standards for GST/HST exemption purposes when compared to Registered Psychotherapists in Ontario. 
2. RMFTs can now rely on this recognition to confirm their status as practitioners exempt from GST/HST when providing psychotherapy services in unregulated provinces. 
3. CACFT is committed to ensuring that our members maintain ongoing recognition of equivalency for tax purposes. 
4. If there are future changes to the RMFT or regulatory college requirements, CACFT will obtain updated confirmation from CRPO. 
5. CACFT maintains a public registry of RMFT members that is accessible to the CRA, listed as Find a Therapist  on the CACFT website. It is your responsibility to review your CACFT profile in the Find a Therapist section of the CACFT website and ensure the information is accurate and up to date. CACFT will keep the Member Directory  page up to date. This includes all members of CACFT, but only their name and membership level in CACFT.

What This Means for RMFTs   

Effective immediately, Registered Marriage and Family Therapists are no longer required to collect GST/HST on psychotherapy services in provinces without psychotherapy regulation. 

Tax exemption for RMFTs is backdated to June 20, 2024, to align with the exemption for regulated Psychotherapists. Any tax charged after this date will need to be returned to the client. Please see below for details. 

Next Steps for RMFTs in Unregulated Provinces  

1. Cease Collecting GST: As of today, stop collecting GST on exempt psychotherapy and supervision services. 
2. Review Your GST Account: If you provide other taxable services, like training, retain your GST account but adjust your billing practices accordingly. Please review the  Clarifying the new GST/HST exemption for psychotherapy and counselling therapy services, which is on the CRA website. 
3. Adjust Input Tax Credits: Eligible Input Tax credits will change with the change in GST/HST collection. See below for more information.
4. Inform Your Clients: Update your clients about this change in billing for counselling therapy and psychotherapy services. 
5. Renew Your Membership for 2025: This exemption applies specifically to RMFTs only (ie registered members who hold the RMFT designation). Members in unregulated provinces who do not hold the RMFT designation are not exempt unless they hold a title from a regulatory body. 

Tax Free Therapy Updates for all Practitioners  

Remittance of Tax Charged to clients from June 20, 2024 to Present There are two options to address charging tax on treatment services after June 20, 2024. The two options are: 

• Repay all tax to clients 
• Clients may request a repayment of the tax from CRA directly

See paragraphs 27-29 of Refund, Adjustment or Credit of the GST/HST under Section 232 of the Exise Tax Act

Proof of Professional Title to CRA 

This includes Registered Psychotherapists, Registered Counselling Therapists, Licensed Counselling Therapists, Canadian Certified Counsellors, and Registered Marriage and Family Therapists. 

CACFT Members who do not hold the RMFT designation are NOT included in tax exemption (unless they hold a regulated title). 

CRA has confirmed that practitioners are NOT required to prove their professional title to the CRA directly or during the process of filing taxes. The CRA will verify each practitioner’s status through the CACFT Directory and the directories of the regulatory colleges. 

Input Tax Credits 

Practitioners are no longer able to claim input tax credits for psychotherapy and counselling services provided as of June 20, 2024. Speak to your accountant to confirm what input tax credits you may be eligible for with this change. Other professions, such as Naturopathic Doctors, have made this change previously and may have resources that guide eligible input tax credits.

Looking Ahead  

CACFT's Role

CACFT remains dedicated to upholding the high standards of the counselling profession that have earned this recognition. To support our members, we will: 

• Continue collaborating with CRPO to maintain substantial equivalency for tax purposes. 
• Ensure our Member Directory is kept current for CRA access

** The Member Directory is distinct from the Find a Therapist Directory. It is members’ responsibility to keep their profile information up to date in the Find a Therapist Directory. Only RMFT’s can have a profile on the Find a Therapist Directory.

This accomplishment reflects the CACFT’s advocacy efforts over the past year to secure this important exemption for our members. 

We are deeply grateful for CCPA and CRPO’s partnerships and expertise in helping achieve this milestone, as well as for your patience and understanding as we worked through the complexities of this issue. 

CACFT Disclaimer 

It is the responsibility of each practitioner and business owner to be aware of the applicable laws relating to their business and make decisions accordingly. Please note that CACFT does not provide any tax advice. If you have questions related to your specific circumstances, please contact the CRA directly or consult with an accountant. 

Sincerely, 

Andrew

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Andrew Sofin MA, RP, TCP, RMFT