Harmonized Sales Tax (HST)
For the most part, midwifery practice groups are not responsible for collecting and remitting HST.
Midwives are identified by the Canada Revenue Agency (CRA) as regulated health-care professionals whose services are not subject to HST.
Items sold by a midwifery practice or other services offered (e.g., prenatal classes) may be taxable. However, most midwifery practices would qualify as a “small supplier,” i.e., someone with income of less than $30,000 per year that is subject to HST. “Small suppliers” are not required to collect and remit HST. If a practice group is no longer a “small supplier”, the practice must register for an HST account with CRA. Once registered, the practice must collect and remit HST on all taxable sales.
Other exemptions, such as the First Nations point-of-sale exemptions, may also apply in certain circumstances.