Specially Designed Training to Assist Individuals with a Disorder or a Disability

GST/HST Info Sheet GI-112
August 2014

This version replaces the one dated January 2011.

This info sheet explains how the GST/HST applies to training that is specially designed to assist individuals with a disorder or disability, as well as to services of designing certain training plans.

Examples of disorders or disabilities include autism, post-traumatic stress disorder, anorexia, bulimia, dyslexia and Alzheimer’s disease. Refer to GST/HST Info Sheet GI-113, Specially Designed Training to Assist Individuals with Autism, for information related specifically to autism.

Exemption from the GST/HST for specially designed training services

Supplies of training services given to children and adults with a disorder or disability or to a person who provides personal care or supervision to those individuals are exempt from the GST/HST if the following three conditions are met:

1. The training is specially designed to assist an individual with a disorder or disability in coping with effects of the disorder or disability, or to alleviate or eliminate those effects.

However, the training must not be similar to training ordinarily given to persons who do not have a disorder or disability, or who do not provide care or supervision to an individual with a disorder or disability. For example, this exemption does not apply to general fitness training.

2. The training is given to the individual with the disorder or disability or to a person who provides personal care or supervision to that individual otherwise than in a professional capacity, such as a parent or caregiver.

3. One of the following conditions applies:

1. a practitioner, such as a provincially-licensed psychologist, a doctor, a social worker or a registered nurse, acting in the course of a professional-client relationship, certifies in writing that the training is an appropriate means to assist the individual in coping with the effects of the disorder or disability, or to alleviate or eliminate those effects;
2. the training is supplied by the federal, provincial or territorial government;
3. the person who supplies the training is paid an amount by the federal, provincial or territorial government, or by an organization administering a government program targeted at assisting individuals with a disorder or disability, to give the training; or
4. the person who acquires the training service is paid an amount by the federal, provincial or territorial government, or by an organization administering a government program targeted at assisting individuals with a disorder or disability, for the purpose of acquiring the training.  For example, this condition is met if financial assistance is provided by the provincial government to parents of a child with a disorder or disability, for the purpose of acquiring the training.

Exemption from the GST/HST for services of designing training plans

The supply of a service of designing a training plan is exempt from the GST/HST if it is made after February 11, 2014 and the following three conditions are met:

1. The training plan is for training that is specially designed to assist an individual with a disorder or disability in coping with effects of the disorder or disability, or to alleviate or eliminate those effects.

However, the training must not be similar to training ordinarily given to persons who do not have a disorder or disability, or who do not provide care or supervision to an individual with a disorder or disability. For example, this exemption would not apply if the design service is to create a training plan for general fitness training.

2. The training plan is for training that is to be given to the individual with the disorder or disability or to a person who provides personal care or supervision to that individual otherwise than in a professional capacity, such as a parent or caregiver.

3. One of the following conditions applies:

1. a practitioner, such as a provincially-licensed psychologist, a doctor, a social worker or a registered nurse, acting in the course of a professional-client relationship, certifies in writing that the training will be an appropriate means to assist the individual in coping with the effects of the disorder or disability, or to alleviate or eliminate those effects;
2. the design service is supplied by the federal, provincial or territorial government;
3. the person who designs the training plan is paid an amount by the federal, provincial or territorial government, or by an organization administering a government program targeted at assisting individuals with a disorder or disability, to design the training plan; or
4. the person who acquires the service of designing a training plan is paid an amount by the federal, provincial or territorial government, or by an organization administering a government program targeted at assisting individuals with a disorder or disability, for the purpose of acquiring the design service. For example, this condition is met if financial assistance is provided by the provincial government to the parents of a child with a disorder or disability for the purpose of acquiring the training plan design service.

The exemption applies to the initial development and design of the training plan and any subsequent adjustments to the plan.

Supplies made after February 11, 2014

Prior to February 12, 2014, a supply of a service of designing a training plan was subject to GST/HST, and GST/HST registrants were required to collect tax on the consideration paid, or payable, for such supplies.

If a supplier that is a GST/HST registrant has charged the GST/HST on supplies of training plan design services made after February 11, 2014, which are exempt, the supplier may refund or credit the tax to the purchaser. A supplier who refunds or credits the amounts collected as GST/HST must do so within two years after the day the amount was charged or collected and must provide the purchaser with a credit note containing prescribed information.

Alternatively, purchasers who have paid an amount as GST/HST on such exempt supplies may claim a rebate of the tax paid using Form GST189, General Application for Rebate of the GST/HST. The time limit to apply for this rebate is two years after the day the purchaser paid the amount. For more information, see GST/HST Memorandum 12.2, Refund, Adjustment, or Credit of the GST/HST under Section 232 of the Excise Tax Act, and Guide RC4033, General Application for GST/HST Rebates.

Suppliers who are registered may have to consider whether they can, or must, de-register from the GST/HST. For information regarding de-registration and related obligations and entitlements, see Guide RC4022 General Information for GST/HST Registrants .

Other exemptions from the GST/HST

Other provisions in the Excise Tax Act may also exempt training and other services provided to an individual with a disorder or disability.

For example, services to assist children and adults with a disorder or disability are generally exempt if they are:

• rendered to the individual with a disorder or disability by a medical practitioner (doctor or dentist) in the course of a consultative, diagnostic, treatment or other health care service;
• rendered to the individual with a disorder or disability by a registered nurse, registered nursing assistant, a licensed or registered practical nurse or a registered psychiatric nurse within a nurse-patient relationship;
• rendered to the individual with a disorder or disability by a provincially licensed or otherwise qualified practitioner, such as a psychologist, physiotherapist, occupational therapist or speech-language pathologist;
• rendered to the individual with a disorder or disability by a provincially licensed or otherwise qualified social worker within a professional-client relationship (services provided by the social worker to a related individual or to another individual who provides care and supervision other than in a professional capacity may also be exempt); or
• provided by a registered charity.

Further information

This info sheet does not replace the law found in the Excise Tax Act (the Act) and its regulations; it is provided for your reference. As it may not completely address your particular operation, you may wish to refer to the Act or appropriate regulation, or contact any GST/HST rulings centre for additional information. A ruling should be requested for certainty in respect of any particular GST/HST matter. Pamphlet RC4405, GST/HST Rulings – Experts in GST/HST Legislation, explains how to obtain a ruling and lists the GST/HST rulings centres.

Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island and 15% in Nova Scotia. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, refer to GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.