GST on Medical Services: When to Charge It

There is a common misconception that "all doctors are GST-free." This is incorrect and dangerous. While "necessary medical treatment" is generally GST-free, many ancillary services provided by clinics are taxable.

The "Appropriate Treatment" Rule

For a service to be GST-free, it must be "necessary for the appropriate treatment of the recipient."
GST-Free: Standard GP consults, specialist appointments, pathology.

When to Charge GST (Taxable)

• Cosmetic Procedures: If a procedure is purely cosmetic (e.g., Botox for wrinkles) and not for a medical condition (e.g., Botox for migraines), it is Taxable.
• Reports: Writing a report for a lawyer, insurance company, or employer (e.g., Pre-employment medical) is usually Taxable because the "recipient" is the third party, not the patient.
• Incentive Payments: Some Practice Incentive Payments (PIP) received from the government include GST, while others do not. Coding these correctly is essential.

Gap Payments

If a service is GST-free (like a consult), the Gap Payment paid by the patient is also GST-free. Do not charge GST on the gap.