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 price excluding GST, giving a 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 the pre-GST price
Since January 1, 2013, QST is calculated on the selling price excluding GST (it was previously charged on the GST-inclusive amount). Example: item $100, GST 5% = $5.00, QST 9.975% of $100 = $9.98. Total invoice: $114.98, a combined rate of 14.975%. 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.
Is QST still calculated on the GST-inclusive amount?
No. That "tax on tax" rule ended on January 1, 2013, when the QST rate rose to 9.975% and harmonisation with GST began. Both taxes are now computed on the same pre-tax price, for a combined rate of 14.975%.
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.
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