Medical Sleep Services Are Exempt Supplies and Not Separate Supplies of Administrative Services

MedSleep Inc. v. The King, 2025 TCC 70

MedSleep operates sleep clinics in which it offers services to patients for medical sleep testing. The compensation is generally allocated 80% to the sleep physician and 20% to MedSleep. The CRA assessed MedSleep on the basis that it made a taxable supply of administrative services to the sleep physicians and should have charged GST/HST. The TCC concluded that, based on the contractual agreements, the medical sleep testing services are a single compound supply of exempt medical services made to the patients and the fee sharing arrangement did not result in separate services being provided by MedSleep to the sleep physicians.

Source: https://www.mccarthy.ca/en/insights/blogs/mccarthy-tetrault-tax-perspectives/top-5-need-to-know-canadian-gst-hst-cases-from-2025?utm_source=mondaq&utm_medium=syndication&utm_content=articleorigonal&utm_campaign=article