Operating in Quebec means navigating two sales taxes: GST at 5% (federal) and QST at 9.975% (provincial) — combined rate of 14.975%.
Registration Threshold
Registration is mandatory when revenues exceed $30,000 in any single quarter or four consecutive quarters. Voluntary registration below the threshold is often advantageous — it allows claiming Input Tax Credits/Refunds on purchases.
Collecting and Remitting
- Charge GST (5%) and QST (9.975%) on all taxable supplies
- File GST returns with CRA; file QST returns with Revenu Québec (separately)
- Remit net tax collected minus ITCs (federal) and ITRs (provincial)
⚠️ Critical: GST goes to CRA; QST goes to Revenu Québec. They are separate filings, separate accounts, separate remittances. Mixing them up causes serious compliance issues.
Filing Frequencies
- Revenue under $1.5M: Annual filing
- $1.5M–$6M: Quarterly filing
- Over $6M: Monthly filing
Common Mistakes
- Failing to register when crossing the $30,000 threshold
- Missing filing deadlines — 1% per month penalty applies
- Charging GST/QST on exempt supplies (basic groceries, residential rent)