Saving HST When Hiring A PSW
Originally published at allaboutestates.ca April 12, 2013:
I have previously blog on the emotional and financial cost of providing care at home. Both can be very costly.
There are some ways to save money when hiring home care assistance. The caveat is that publicly funded services of a personal support worker (PSW) need to already be in place. The long and short is, if the Community Care Access Centre (CCAC) is providing PSW service, any additional PSW hours should be tax exempt according to CRA.
• Under s. 123(1) of the Excise Tax Act, an “exempt supply” means a supply listed in Schedule V of the Act.
• Part II of Schedule V provides as follows:
o “13. A supply of a homemaker service that is rendered to an individual in the individual’s place of residence, whether the recipient of the supply is the individual or any other person, where
(a) the supplier is a government or municipality;
(b) a government, municipality or organization administering a government or municipal program in respect of homemaker services pays an amount
(i) to the supplier in respect of the supply, or
(ii) to any person for the purpose of the acquisition of the service; or
(c) another supply of a homemaker service rendered to the individual is made in the circumstances described in paragraph (a) or (b).”
• The interpretive section of the same part provides as follows:
• “’homemaker service’ means a household or personal service, such as cleaning, laundering, meal preparation and child care, that is rendered to an individual who, due to age, infirmity or disability, requires assistance.”
For additional information please visit the CRA website:
and http://laws-lois.justice.gc.ca/eng/acts/E-15/page-327.html#sched7
