QST Quebec — Complete guide for SMBs
Quebec Sales Tax registration, calculation and filing with Revenu Québec
Quebec is the only Canadian province with its own provincial sales tax (QST) separate from but coordinated with the federal GST. QST is 9.975% applied to the GST-inclusive amount, giving an effective combined rate of 14.975%. Registration is with Revenu Québec, filings are separate from CRA. This guide covers registration thresholds, calculation method, Input Tax Refunds (ITR) and digital filing.
Who must register for QST
Mandatory if you sell taxable goods or services in Quebec and your worldwide taxable revenues exceed $30,000 over any four consecutive calendar quarters. Non-resident businesses (including US/EU sellers shipping into Quebec) registering for GST/HST may also need to register for QST.
QST calculation on GST-inclusive amount
Unlike most other provincial taxes, QST is calculated on the price INCLUDING GST. Example: item $100 + GST $5 = $105, then QST 9.975% of $105 = $10.47. Total invoice: $115.47. The effective combined rate is 14.975%, not 14.975% straight. Invoices must show GST and QST separately.
Input Tax Refund (ITR)
QST equivalent of CRA's Input Tax Credit. Once registered for QST, you can claim refund on QST paid on business purchases. Some restrictions: meals and entertainment (50% recoverable), automobiles and fuel (specific rules). Quebec has its own RITC equivalent on certain items.
Filing schedule and forms
Filing frequency based on revenue: monthly (revenue >$6M), quarterly (revenue $1.5M-$6M), annual (revenue <$1.5M, optional). Form FP-500-V combined GST/QST return for those registered both. Online filing via clicSÉQUR Entreprises or paper. Late penalty: 5% + 1% per month + interest.
Frequently asked questions
Do I need separate QST registration?
Yes — QST is administered by Revenu Québec, separate from CRA. Register if you sell into Quebec above the $30k threshold.
Why is QST calculated on GST-inclusive?
Historical reason: Quebec inherited from Quebec's pre-GST sales tax. The effective combined rate is 14.975% (not 14.975% simple). Software handles this automatically.
What's QST ITR?
Input Tax Refund — QST equivalent of CRA's Input Tax Credit. Recover QST paid on business purchases. Some restrictions on meals (50%), vehicles, fuel.
Can I file QST and GST together?
Yes — Form FP-500-V combines both in one filing for businesses registered for both. Quarterly typically.
What about Bill 96 French requirements?
Bill 96 (Quebec 2022) requires French communications. Invoices, receipts, contracts must be available in French for Quebec customers.
Related solutions & industries
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