How GST is calculated on Clearhead invoices

This article is designed to resolve frequently asked questions by New Zealand-based Clearhead providers that are not registered for GST.

Types of Clearhead customers

Clearhead processes appointments funded by EAP clients, insurance providers and self-funded members of the general public.

For all bookings in New Zealand, we charge the buyer directly, and you as the provider, invoice Clearhead using our provider portal.

For therapists in Australia, bookings that come from self-funded members of the general public will pay you directly (until further notice). These bookings will be clearly marked and you will receive instructions each time such a booking is made.

GST considerations for each type of customer

Bookings made from an EAP or insurance funded programme are always subject to GST.

However, self-funded therapy from members of the general public may not be required to pay GST on services provided by you if you are not registered for GST.

Clearhead only needs to add GST to its component of the fees.

Clearhead is not subject to sharing economy (online marketplace) GST rules introduced in New Zealand in 2024 because it does not transact a listed service (ride sharing, food and beverage delivery, accommodation).

How does this work in practice?

Two examples are provided below. One for a therapist who is registered for GST, and another who who is not.

Alannah

Alannah is a kiwi therapist registered for GST. She provides talking therapy via Clearhead, and usually charges $100 plus GST.

When she joins Clearhead, she sets her GST exclusive price to $100.00 and confirms she is registered for GST.

When Alannah gets a booking via Clearhead, she can generate an invoice to Clearhead (via our portal) that reads:

• Counselling $100.00
• GST on Counselling: $15.00
• Clearhead Commission: -$10.00
• GST on Clearhead Commission: -$1.50
  • TOTAL amount paid to Alannah by Clearhead: $103.50 including GST (which may also be expressed as $90.00 plus GST)
    
    

Alannah and Clearhead are both GST registered, so GST is applied to the whole amount of the invoice. In the case of a self-funded booking made by a member of the general public, the customer invoice from Clearhead for Alannah’s session reads:

• Counselling: $100.00
• Booking fee: $5.00 (5%*)
• GST: $15.75 (15%)
  • Final consumer price including fees and taxes: $120.75
    
    

Brent

Brent is a kiwi therapist that is not registered for GST. He provides talking therapy at $100 per hour to the general public.

When Brent joins Clearhead he sets his price $100 and confirms that he is not registered for GST (So the $100 contains no GST component).

When Brent gets a booking, Clearhead allows him to invoice Clearhead for $100 - 10% commission. While Brent is not GST registered, Clearhead is, and so fees from Clearhead must have a GST component added.

Brent’s invoice to Clearhead reads:

• Counselling: $100.00
• Clearhead Commission: -$10.00
• GST on Clearhead Commission: -$1.50
  • TOTAL amount paid to Brent by Clearhead: $88.50 (with no GST component).
    
    

When a Clearhead customer is not GST registered (for example, a person self-funding therapy), GST is not added to Brent’s component of a customer invoice. However, Clearhead’s fees remain subject to GST. The customer invoice from Clearhead for Brent’s session reads:

• Counselling: $100.00
• Booking fee: $5.00 (5%*)
• GST: $0.75 (15% of the booking fee)
  • Final consumer price including fees and taxes: $105.75
    
    

*Clearhead charges a 5% booking fee to cover costs associated with transacting online (including credit card fees). Clearhead uses Stripe to facilitate payments.