Gift Certificates for RMTs in Canada: What You Need to Know
Selling gift certificates can be a great way to bring new clients into your practice and give your regulars an easy way to support you. But in Canada, there are a few key things to know about regulations, insurance, and accounting before you start selling them.
How to Issue Gift Certificates
The most important thing? Don’t make it difficult for people to give you money. Gift certificates should be simple and convenient to buy.
Online options: Many practice management systems like Jane or Noterro allow you to sell gift certificates directly online. You can also use platforms like Square.
Physical cards: Some clients still prefer a tangible, beautifully printed card. Offering this option can make the gift feel more personal. You could use a Canva template for paper cards or order plastic cards through Square.
Policies: Be clear. Are certificates transferable? Do they apply to all services or only certain ones? Setting expectations upfront prevents future headaches.
Federal & Provincial Regulations
Gift certificate rules aren’t federal—they’re set at the provincial level. It’s important to check your province’s regulations because fines can apply for non-compliance.
Some key points that are generally true across Canada:
No expiry dates: Gift cards usually cannot expire.
Exceptions: Expiry dates are allowed if the certificate was a charitable donation or if it’s tied to a specific service (for example, a “60-minute massage”). If you go this route, don’t list the dollar value on the card.
Source: https://www.canada.ca/en/financial-consumer-agency/services/payment/gift-cards.html
Insurance Implications
This is an area where things can get tricky.
When the gift certificate is purchased: A receipt should go to the purchaser, but it must clearly say that it was for the purchase of a gift card. That receipt is not eligible for insurance submission or direct billing.
When the gift certificate is redeemed: Can the client get a receipt for insurance? The Canadian Life and Health Insurance Association (CHLIA) has stated that receipts should indicate the method of payment (e.g., “Paid with gift card”) and that it’s ultimately up to the insurance company whether they’ll cover it (source). Some associations ask RMTs to also put $0.00 as the amount paid and have the client attach the original gift certificate receipt when submitting to the insurance plan (source). Please check with your association/governing college.
Best practice: Be upfront with clients that their insurance provider may not cover services paid for by a gift certificate.
Accounting & GST/HST
From a financial perspective, gift certificates are treated differently than regular transactions.
At the time of sale: A gift certificate is like cash—it’s just a payment method. You don’t charge GST/HST when selling it. If your 60-minute massage is $105 (which includes tax), you would sell the gift certificate for $105. The purchaser pays the full amount up front, just as if they were booking the massage themselves.
At the time of redemption: When the certificate is redeemed, that’s when the GST/HST is officially applied on your books. From the client’s point of view, though, the massage is already covered in full—no extra out-of-pocket surprise.
On your books: Until it’s redeemed, the money you collected is recorded as a liability. Once the massage is provided, that liability is cleared and the amount becomes revenue.
Tracking: Make sure you have an easy way to monitor outstanding balances, whether through your booking software or even a simple spreadsheet.
Final Thoughts
Gift certificates can be a fantastic way to grow your massage therapy practice, especially around holidays or special occasions. Just make sure you set clear policies, follow your provincial regulations, and handle receipts and accounting properly.
That way, your gift certificates will benefit both you and your clients—without causing headaches down the road.
More Resources:
Jordan and Melissa discuss this topic in more detail. Jordan is a CPA that adds a wealth of information!
