Acupuncture Accounting in Burlington, Ontario

No. Acupuncture services provided by a practitioner registered with the College of Traditional Chinese Medicine Practitioners and Acupuncturists of Ontario (CTCMPAO) are HST-exempt under the Excise Tax Act. This exemption applies to acupuncture treatments provided within the scope of the regulated profession. If your practice also sells herbal supplements, Chinese herbal products, or other retail items, those sales are typically taxable at 13% HST. Clinics with both acupuncture services and product sales need to track revenue streams separately for proper HST compliance.

Yes. Ontario acupuncturists registered with CTCMPAO can incorporate under the Business Corporations Act (Ontario). Incorporation allows you to defer personal income tax by retaining profits at the lower corporate tax rate, access the small business deduction, and potentially income-split with family members who work in or invest in the practice. The incorporation decision depends on your income level and personal draw requirements. We model both incorporated and unincorporated scenarios for your specific situation before you make the decision.

Self-employed Ontario acupuncturists can deduct legitimate business expenses against practice income. Common deductible expenses include: clinic space rent or your share of shared space fees, acupuncture needles and supplies, herbal products used in treatment (not for resale), CTCMPAO registration fees, malpractice insurance premiums, continuing education and TCM courses, professional association memberships, bookkeeping and accounting fees, marketing and website costs, and home office expenses for administrative work. Since your acupuncture services are HST-exempt, you cannot claim ITCs on expenses related to those exempt services — but all business expenses remain deductible for income tax.

Herbal supplement and Chinese herbal product sales are generally taxable at 13% HST, even though your acupuncture treatment services are HST-exempt. If your supplement sales exceed the $30,000 small supplier threshold, you must register for HST and charge it on those sales. Once registered, you can claim input tax credits (ITCs) on expenses related to your taxable product sales — but not on expenses related to your exempt acupuncture services. We help you set up separate revenue tracking so your HST compliance is accurate and your monthly bookkeeping clearly distinguishes exempt treatment income from taxable product sales.

Many extended health benefit plans in Ontario cover acupuncture services, and some allow direct billing while others require patients to pay and submit for reimbursement. For bookkeeping purposes, the key is tracking your revenue in the period the service was delivered — not when the insurance pays. If you offer direct billing, you have accounts receivable that need monitoring for outstanding claims. Jane App and Cliniko both support extended health direct billing and generate reports that help reconcile insurance payments against services delivered. We reconcile these deposits monthly so your income picture is accurate.