DST repeal saves Canadian therapists software costs
Running a solo therapy practice involves carefully managing your costs. That’s why the federal government’s June 29, 2025 decision to cancel the Digital Services Tax (DST) is good news for clinicians who rely on online booking, telehealth, and advertising platforms. Here’s what happened, what it means for your budget, and how to make the most of the change.
What Was the Digital Services Tax?
The DST, introduced in 2024, imposed a three percent tax on large tech companies’ Canadian revenues once their local sales exceeded $20 million. The first filings and payments were scheduled for June 30, 2025. In anticipation, several platforms warned users about fee increases.
Google, for example, told advertisers in 2024 that it would add a surcharge on Canadian ads “to cover part of the costs associated with complying” with the tax. Small practices that advertise online or use software built on Google services had braced for higher monthly bills.
What Changed on June 29, 2025?
According to the Department of Finance, the government will halt the June 30, 2025 DST collection and soon introduce legislation to rescind the Digital Services Tax Act. The government will refund any DST amounts you have already paid once the repeal bill passes Parliament. Simply put, the government cancelled the tax before any payments were required.
Why This Matters for Mental Health Professionals
Subscription fees likely won’t rise
Many practice-management, payment, and telehealth vendors had built the three percent levy into their 2025 pricing forecasts. With the tax set to disappear, those planned increases should no longer appear on your invoices. Check your July and August invoices to ensure any DST surcharge has been removed or credited.
Virtual care remains essential
Virtual appointments aren’t a pandemic stop-gap. Statistics Canada reports that 46.3 percent of Canadians who accessed mental health or addiction services in 2022 did so by video meeting. Because therapy relies heavily on digital platforms, even small fee hikes have an outsized impact on solo practitioners’ operating costs.
Practical Steps for Your Practice Budget
- Review upcoming invoices
Check July statements from your platforms (Jane, Owl, or telehealth providers). If DST charges appear, ask support when they will be removed.
- Request refunds or credits
If you’ve already paid DST fees, document these charges and clarify with vendors if they’ll issue credits automatically.
- Update your cash-flow forecasts
If you planned fee increases in fall 2025 due to anticipated software cost hikes, reconsider these adjustments now.
- Store documentation
Keep receipts for any DST fees paid, as you may need these documents for potential refunds.
What’s Still Unclear
The Finance Minister must table, and Parliament must pass, the repeal legislation. Until Royal Assent, a few vendors might keep a wait-and-see stance. The government has also been silent on whether a different levy could replace the DST down the road. It’s essential to stay informed through trusted sources like government sites, professional associations, and your accounting adviser.
What DST repeal means for you
The DST repeal removes a looming cost increase for the digital tools therapists depend on every day. While the legislative process isn’t complete, Ottawa’s clear intention should give practice owners confidence to maintain current software budgets and even seek small refunds for fees already charged. For small practices with limited budgets, this change could result in noticeable savings.
Next Step
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