Are dental services subject to GST/HST in Canada?

Most aren't: dental services for medical reasons are exempt. Cosmetic services, like teeth whitening, are taxable.

Can a dentist claim input tax credits?

Not on things bought for exempt work. A registered dentist can claim on things used for taxable work, like cosmetic services, and splits the credit on things used for both. Nothing can be claimed on something used 90% or more for exempt work.

Does a doctor need to register for GST/HST?

Not if every service is exempt. You generally can't register if you only make exempt supplies. Taxable work, like cosmetic procedures, counts toward the $30,000 threshold; exempt work doesn't.

How do I record GST/HST I can't claim back?

As part of the cost. A $1,000 supply order with $130 of HST you can't claim is a $1,130 expense.

Bookkeeping for medical and dental practices in Canada

Most health, medical and dental services are exempt from GST/HST. That cuts both ways: you don't charge it, and you can't claim back the GST/HST you pay on what you buy to provide them. So in your books, the tax on your supplies and equipment is part of their cost.

Where the money goes in your books

What a medical and dental business usually spends on, and the account in a Canadian chart of accounts it belongs in. The numbers are the account codes in Spark’s starting chart.

Typical costs and the account each goes to
What you pay for	Account
Dental and medical supplies	5000 Purchases and materialsGST/HST included, if you can't claim it back.
Lab fees	5100 Subcontractors
Chairs, imaging and sterilisers	1500 Equipment and furnitureAssets, not expenses.
Clinic rent	6700 Rent
Practice-management software	6520 Software and subscriptions
College dues and licence fees	6400 Licences, dues and memberships
Malpractice and office insurance	6200 Insurance
Hygienists, assistants and front desk	6800 Wages and benefitsThrough a payroll service.

How a chart of accounts works · The whole chart, as a template

The tax rules that are different for you

Each one is from the CRA, checked in October 2026. The link goes to the page it came from.

Most health services are exempt

Most health, medical and dental services from licensed physicians, dentists, nurses and certain other practitioners are exempt from GST/HST. You don't charge it, and you generally can't claim input tax credits on what you buy to provide them.

CRA: type of supply

Only exempt services? You can't register

You generally can't register for GST/HST if you only make exempt supplies. Exempt revenue also doesn't count toward the $30,000 small-supplier threshold.

CRA: when to register

Cosmetic work is taxable

A dental or surgical service done for cosmetic reasons, not medical or reconstructive ones, is taxable. Teeth whitening is the CRA's example. Charge GST/HST on it unless you're a small supplier.

CRA: Notice 282

Mixed practices split their input tax credits

A registered dentist can't claim input tax credits on something used 90% or more for exempt work. Something used for both taxable work, like cosmetic services or orthodontic appliances, and exempt work has its credit split between them.

CRA: Notice 339, ITCs for dental practices

Records to keep

Fee reports that separate exempt treatment from taxable cosmetic work.
Supplier invoices, keeping the GST/HST shown on each.
Lab invoices by case.
Equipment purchase and lease papers.

Common mistakes

Claiming input tax credits on supplies for exempt treatment.
Not charging GST/HST on whitening once taxable sales pass the $30,000 threshold.
Splitting a mixed practice's input tax credits by guesswork, with no record of how.
Running personal spending through the practice account.

How Spark Books handles it

Fits, with limits

Fits an unregistered practice well. A registered mixed practice needs an accountant for the ITC split.

What it does

If you tell Spark you aren't registered for GST/HST, it books every purchase at its full price and claims nothing back. That's right for a practice that only makes exempt supplies.
Sorts supplies, lab fees, rent and equipment from your statements.
A year-end package your accountant can work from.

What it doesn’t

It doesn't split input tax credits between taxable and exempt work. A registered practice that does both needs its accountant to make that split.
No payroll for your staff.
No live bank feed: you upload statements. Not available in Quebec yet.

Free, with no card. If you’d rather not do it yourself, a Spark bookkeeper keeps your books for $350 a month. How Spark Books works

Questions

Are dental services subject to GST/HST in Canada?: Most aren't: dental services for medical reasons are exempt. Cosmetic services, like teeth whitening, are taxable.
Can a dentist claim input tax credits?: Not on things bought for exempt work. A registered dentist can claim on things used for taxable work, like cosmetic services, and splits the credit on things used for both. Nothing can be claimed on something used 90% or more for exempt work.
Does a doctor need to register for GST/HST?: Not if every service is exempt. You generally can't register if you only make exempt supplies. Taxable work, like cosmetic procedures, counts toward the $30,000 threshold; exempt work doesn't.
How do I record GST/HST I can't claim back?: As part of the cost. A $1,000 supply order with $130 of HST you can't claim is a $1,130 expense.

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