Hello,
Our consultant is now charging GST.
I am considering having our Consultant bill for EAI funds directly.
Direct Billing has the advantage that the Prov. Govt. does not pay GST and the disadvantage that payment is at least 5 weeks and one loses some control over the EAI funds.
If the disadvantages are bad enough, I would switch back to us paying our consultant directly.
I also found this previous FEAT post of some interest, but my consultant needs specifics.
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By Avery Raskin (Raskin) on Friday, April 22, 2005 – 12:47 pm:
A few things about consultants and taxes:
1) No bona fide consultant should be excluded from any service providers' list. If the consultant you want to use is a qualified experienced Lovaas-ABA consultant and is being kept off the list, that is something we need to make public.
2) GST is a place where the social worker may actually be telling you the truth — the provincial government is exempt from GST so if they are billed by a consultant they don't have to pay any, whereas if you are billed directly by a consultant, and that consultant has registered for GST, they will charge you for it. This leads us to (3):
3) Lovaas-ABA treatment programs are GST exempt under the rules of GST. Unfortunately, qualified ABA professionals don't always get the correct tax advice. Once registered and remitting tax to the government, it's very hard to get them to take you off the rolls and let you stop charging. It pains me that some of the best ABA consultants fell into this trap. What they need to do is to get some competent legal advice and take the pains to get out of that mess, so they can stop charging for it. If you look it up on the CCRA web site, you will find the relevent sections — as a psychological service, and medically-necessary treatment, Lovaas-ABA is exempt.
Avery
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Can anyone provide specifics to help our consultant (and other consultants), so they do not have to collect GST?
Earl Friesen
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