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PricingService areasAll services →Accounting and Tax for Ontario Pharmacies
Zero-rated prescriptions, mixed front-store HST, Ontario Drug Benefit reconciliations and inventory handled by a CPA-led accounting firm that understands independent pharmacy.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 31 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario pharmacies, from pharmacist-owners opening a first independent store to owners with several locations. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We handle bookkeeping, HST, payroll and corporate and personal tax, and every return is reviewed by a CPA.
A pharmacy runs three businesses under one roof: zero-rated prescriptions, a front store with a mix of taxable and zero-rated products, and professional services. Each has its own HST treatment, and the inventory behind them is usually your biggest asset.
Pharmacy tax and bookkeeping issues we handle
Prescription drugs and dispensing fees are zero-rated
Prescription drugs dispensed by a pharmacist for human use are generally zero-rated, and so is the dispensing fee charged with them. You don’t charge HST, but you can still claim input tax credits on the HST you pay, which often puts pharmacies in a refund position. We make sure every eligible credit is claimed.
Law and source: Excise Tax Act Schedule VI, Part I ss.2–4 (zero-rated prescription drugs and dispensing); CRA GST/HST Memorandum 4-1, Drugs and biologicals (dispensing fees, para 14); Excise Tax Act s.169(1) (input tax credits).
Front-store HST
Over-the-counter products, cosmetics and general merchandise are mostly taxable, while some medical devices and basic groceries are zero-rated. We check your POS tax codes so each product is coded correctly.
Law: Excise Tax Act s.165 (GST/HST imposed); Excise Tax Act Schedule VI, Part I ss.2–4 (zero-rated prescription drugs and dispensing).
Pharmacist services
Services such as medication reviews, vaccine administration and minor ailment assessments are generally exempt from HST when you provide them to a patient within a pharmacist-patient relationship, whether the province, an insurer or the patient pays. Services that aren’t for a patient’s health care, such as reports or forms for a third party, can be taxable, so we review each one.
Law and source: Excise Tax Act Schedule V, Part II s.7.3 (pharmacist services) and s.9 (provincially insured services); CRA GST/HST Policy P-256, Qualifying health care supplies.
Ontario Drug Benefit and insurer reconciliations
Claims to the Ontario Drug Benefit program and private insurers are paid on their own schedules. We reconcile claims to payments so rejected and short-paid claims show up early.
Inventory and cost of goods sold
Year-end inventory is usually valued at the lower of cost and fair market value. We reconcile your dispensary and front-store counts to the books so your gross margin is real.
Ownership rules for corporate pharmacies
In Ontario, a corporation that owns a pharmacy generally needs a majority of its directors to be pharmacists. We keep your corporate records and shareholder structure in line before you add investors or family members.
Pharmacist and technician payroll
We run payroll for pharmacists, technicians and front-store staff with the right source deductions, and track your Employer Health Tax position as payroll grows.
Law and source: Income Tax Act s.153(1) (source deductions); Employer Health Tax Act (Ontario) s.2.1 (annual exemption for eligible employers); Ontario, EHT tax exemption.
Key rules at a glance
← Swipe to compare →
| Rule | What it means for you | Law and source |
|---|---|---|
| Prescription drugs | Generally zero-rated for HST | Excise Tax Act Schedule VI, Part I ss.2–4 (zero-rated prescription drugs and dispensing) |
| Dispensing fees | Zero-rated when charged for dispensing a zero-rated drug | CRA GST/HST Memorandum 4-1, Drugs and biologicals (dispensing fees, para 14) |
| Input tax credits | Claimable on costs for zero-rated sales, often creating refunds | Excise Tax Act s.169(1) (input tax credits) |
| Inventory | Valued at the lower of cost and fair market value | Income Tax Act s.10(1) (inventory valuation) |
| Corporate ownership | Majority of directors must be pharmacists | Drug and Pharmacies Regulation Act (Ontario) s.142 (corporate pharmacy ownership: majority of directors pharmacists) |
| Employer Health Tax | EHT on Ontario payroll above the exemption | Employer Health Tax Act (Ontario) s.2.1 (annual exemption for eligible employers); Ontario, EHT tax exemption |
Who we work with
- Independent community pharmacies
- Pharmacist-owners opening a first store
- Multi-location pharmacy owners
- Compounding and specialty pharmacies
- Pharmacies inside medical clinics
- Banner and franchise pharmacy owners
T-Ledgers services for pharmacies
- ODB and insurer reconciliations. Claims matched to payments each month, quoted after a free call (see bookkeeping).
- Monthly bookkeeping. From $500/month (Scale), with books closed by the 10th; quarterly bookkeeping from $350/month (Growth). Your fixed fee is confirmed after a free call. On monthly plans your books are done by the 10th, and if we're late on our side, that month's fee is waived (see bookkeeping).
- Catch-up bookkeeping, from $1,800 per year. We rebuild past years and file what's overdue (see catch-up bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter. For owners who keep their own books (see bookkeeping).
- GST/HST returns, $150 per return. Filed on your CRA schedule (see GST/HST services).
- Payroll. Quoted after a free call (see payroll services).
- Corporate (T2) and personal (T1) tax. Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Corporate (T2) returns are quoted after a free call (see corporate tax and personal tax).
- Virtual CFO, from $2,500/month. Cash flow, margins and growth decisions (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with pharmacies
- Free call. We ask about your stores, POS and dispensary software, payers and how your records are kept.
- Written price. Scope and price in writing before any work starts.
- Setup. HST codes by product type, claims and payer accounts, inventory accounts.
- Monthly rhythm. Books done by the 10th on monthly plans, HST refunds filed on time, claims reconciled.
- Year-end. Inventory reconciliation, T4s, T2 and your T1, all reviewed by a CPA.
Why pharmacies choose T-Ledgers
- We understand pharmacy HST. Zero-rated prescriptions, mixed front-store sales and the refunds that come with them are part of our normal conversation.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA, practising since 2020. Every return is reviewed by a CPA before it's filed.
- Proven track record. 202 clients served and $60 million in client revenue managed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| HST refunds | Credits left unclaimed | Claimed, but POS codes not checked | ✓POS codes and credits reviewed |
| Claims reconciliation | Rejected claims found late | Year-end only | ✓Matched to payments monthly |
| Inventory | One count, rarely reconciled | Year-end only | ✓Counts reconciled to the books |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: Pharmacy
No. Prescription drugs dispensed by a pharmacist, and the dispensing fee, are generally zero-rated.
Because zero-rated sales still let you claim input tax credits on your costs. Most of your sales carry no HST, but you pay HST on rent, fixtures and some purchases.
Most are, but some medical devices and food items are zero-rated. We check your POS codes.
Yes. We match claims to payments each month so short payments show up early.
Generally at the lower of cost and fair market value. We reconcile counts to the books at year-end.
Possibly, but Ontario generally requires a majority of the directors to be pharmacists. We check the structure before any change.
Yes, with source deductions, T4s and EHT tracking.
GST/HST returns are $150 per return, catch-up bookkeeping starts from $1,800 per year, the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books). Monthly bookkeeping is from $500/month (Scale) and quarterly bookkeeping from $350/month (Growth). Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Payroll and corporate tax returns are quoted after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
On monthly plans your books are done by the 10th, and if we’re late on our side, that month’s fee is waived.
Yes, if you have a comparable written quote and bring it to us before you sign your proposal. We can only match a price when it’s agreed before the proposal is signed.
Yes. Snap receipts with Dext, share documents through our client portal and talk by phone or video. You can also meet us in Etobicoke or Mississauga by appointment.
Book a free call through our contact page or call 866-254-5368. We’ll ask a few questions about your business and send you a written price before any work starts.
Own or manage a pharmacy in Ontario?
Talk to a CPA who understands zero-rated drugs and pharmacy HST refunds. Book a free call. We reply within one business day, and a real person answers 24/7 at 866-254-5368.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 18, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Related industries: Healthcare professionals · Doctors and dentists · All industries