Many pharmacists working as independent contractors or through professional corporations ask the same question:
Many pharmacists working as independent contractors or through professional corporations ask the same question:
Do I need to charge HST on my pharmacy services?
The short answer is: sometimes yes, sometimes no — it depends on what services you provide, who your client is, and how CRA classifies the supply.
At Momentum Accounting CPA Professional Corporation, we help pharmacists across Hamilton, Toronto, Mississauga, Brampton, Oakville, Milton, Vaughan, Markham, Scarborough, Ottawa, Kitchener-Waterloo, London, Windsor, and across Ontario determine whether their services are HST-exempt or taxable, and ensure full CRA compliance.
How CRA Determines Whether Pharmacist Services Are HST-Exempt
In Ontario, HST is charged at 13% on most supplies. However, under the Excise Tax Act, certain health-care services are exempt from HST.
Under Schedule V, Part II of the Excise Tax Act, pharmacy services are generally exempt when they are:
👉 The key test is the primary purpose of the service, not the professional title alone.
When Pharmacist Services Are Exempt from HST
Pharmacist services are generally HST-exempt when they involve direct patient care, including:
This exemption applies even if you are:
When Pharmacist Services ARE Subject to HST
HST must be charged when the service is not primarily patient care, even if performed by a licensed pharmacist.
Common taxable pharmacist services include:
These services are considered taxable professional services, not exempt health-care supplies.
Employee vs Independent Contractor: Why It Matters
If you are an employee, you never charge HST.
If you are an independent contractor or incorporated pharmacist, CRA examines factors such as:
Once CRA determines you are self-employed, you must assess whether each service is exempt or taxable.
The $30,000 Small Supplier Rule
If your total taxable revenue exceeds $30,000 in any 12-month period, you must:
⚠️ Exempt pharmacy services do not count toward the $30,000 threshold.
Common HST Mistakes Pharmacists Make
These errors often lead to CRA reassessments, denied ITCs, penalties, and interest.
What If You Provide Both Exempt and Taxable Services?
Many pharmacists do both:
CRA requires you to:
Proper bookkeeping and invoicing are critical.
Frequently Asked Questions
Do pharmacists need to charge HST in Ontario?
Only if they provide taxable services such as consulting or management. Patient care services are generally exempt.
Do I need to register for HST if I earn under $30,000?
No, unless you choose to register voluntarily. The threshold applies only to taxable revenue.
Does incorporation change HST rules?
No. The corporation becomes the supplier, but the same exemption rules apply.
Can I charge HST on exempt services to claim ITCs?
No. CRA prohibits charging HST on exempt supplies.
How do I confirm if my service is exempt?
Review your contract and service purpose. CRA Policy P-256 provides guidance.
How Momentum Accounting CPA Professional Corporation Helps Pharmacists
We work with pharmacists across Ontario and Canada to:
📍 Serving Hamilton, Toronto, GTA, and Ontario-wide
📧 info@momentumaccountingcpa.ca
📞 647-717-1242
Key Takeaways
Disclaimer
This article is for general information only and does not constitute tax or legal advice. Tax outcomes depend on individual circumstances. Consult a qualified CPA before taking action.
