Running a Montreal restaurant means managing one of the most complex accounting environments — high transaction volumes, gratuities, perishable inventory, and intense regulatory scrutiny.
The MEV (Module d'enregistrement des ventes)
Quebec requires all restaurant businesses to use a certified Sales Recording Module (MEV) connected to your POS that records all sales and transmits to Revenu Québec. Tampering with an MEV is a criminal offense with fines up to $100,000+.
Employee Tip Reporting
Employers must add a tip allocation to T4/RL-1 slips based on 8% of food and beverage sales attributed to each employee, unless the employee reports at least that amount. Tips are fully taxable employment income.
Inventory and Cost Control
Monthly inventory tracking is essential for accurate COGS reporting. Food cost (28–35%) and beverage cost (18–25%) should be monitored weekly. Unexplained variance between theoretical and actual cost triggers audits.
GST/QST Compliance
All restaurant sales are subject to GST (5%) and QST (9.975%). Basic groceries are zero-rated — knowing the distinction matters if you sell packaged goods alongside restaurant meals.
Monthly financial reporting — not just annual — is essential for managing Montreal's seasonal restaurant revenue swings.