- The Canada Revenue Agency has ended its administrative arrangement with the Canadian Dental Association affecting GST/HST registered dental practitioners
- For over three decades, dentists could estimate their input tax credits at 35% of total fees for orthodontic treatments
- Starting January 1, 2025, dentists must keep precise records and claim input tax credits based on actual input usage in commercial activities
- New regulations require detailed tracking of inputs used in taxable versus exempt supplies and proper apportionment for mixed-use supplies
- Recent court rulings have differentiated between taxable orthodontic appliances and exempt orthodontic services, impacting input tax credit claims
- Dentists must now conduct reconciliations based on actual amounts charged, not estimates, as per the Excise Tax Act requirements
- It is essential for dental practitioners to understand and prepare for these changes to comply with the new accounting and tax practices requirements
Source: sbpartners.ca
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
