QST in Quebec: What Small Business Owners Need to Know

If your business is in Quebec — or if you sell to customers in Quebec from another province — you likely need to deal with two separate sales taxes. Most of Canada uses the Harmonized Sales Tax (HST), a single combined federal-provincial tax collected by the CRA. Quebec is different: it kept its own provincial sales tax system, the QST (Taxe de vente du Québec / Quebec Sales Tax), administered separately by Revenu Québec.

GST vs. QST: The Basics

Together, the combined tax rate in Quebec is 14.975% (5% + 9.975%). These two taxes are filed and paid separately to two different government bodies — the CRA for GST and Revenu Québec for QST. They have separate registration numbers, separate filing deadlines (which are usually the same, but managed independently), and separate rules in some areas.

Who Needs to Register for QST?

The QST registration threshold mirrors the federal GST threshold: $30,000 in taxable revenues over the past four consecutive calendar quarters (or in a single quarter). If you're already required to register for GST because of the $30,000 threshold, you're also required to register for QST — these thresholds run in parallel.

You need to register for QST if:

• Your business is based in Quebec and your taxable revenues exceed $30,000
• You're a non-resident of Quebec selling taxable supplies to Quebec consumers (see the Digital Economy rules below)
• You're voluntarily registering before the threshold is reached (same logic as GST)

How to Register for QST

QST registration is done through Revenu Québec — not the CRA. You register online at revenuquebec.ca or by calling Revenu Québec directly. You'll receive a QST registration number (ending in TQ followed by four digits, e.g., 1234567890TQ0001).

If you're already registered for GST with the CRA, you still need a separate QST registration. The two numbers are issued by different bodies and serve different purposes.

Charging QST: What Gets Taxed?

The QST applies to most goods and services sold in Quebec, with the same general exemption categories as the GST:

• Taxable at 9.975%: Most goods and services, digital products, software, consulting, professional services, retail sales
• Zero-rated (0% QST): Basic groceries, most prescription drugs, most exports from Quebec
• Exempt: Most healthcare services, financial services, most educational services, long-term residential rental

When you invoice a Quebec-based client, a correctly structured invoice should show two separate tax lines:

• GST (5%) = [amount] — Registration: [your BN RT number]
• QST (9.975%) = [amount] — Registration: [your QST TQ number]

The Digital Economy Rules: Non-Residents Selling to Quebec

Since 2019 and expanded since, Quebec requires non-resident businesses (including businesses from other provinces) to register for QST if they sell digital services or products to Quebec consumers. This includes:

• Software, apps, and digital subscriptions
• Online platforms and streaming services
• E-commerce platforms facilitating sales to Quebec buyers
• Cloud computing services

If you're a Toronto-based SaaS company selling to Quebec customers, for example, you likely need to register for QST. There's a simplified registration process for non-residents at revenuquebec.ca.

Input Tax Refunds (ITRs): Getting QST Back

The QST equivalent of federal Input Tax Credits (ITCs) is called an Input Tax Refund (ITR). If you're QST-registered and you paid QST on purchases made for your commercial activities, you can claim an ITR to recover that tax on your QST return.

The rules for ITRs closely mirror those for federal ITCs:

• Only purchases for your commercial activities qualify
• Meals and entertainment are limited to 50% ITR
• Documentation requirements are similar (invoices with supplier's QST number for large purchases)
• You have four years to claim ITRs you missed

Filing QST Returns

QST returns are filed with Revenu Québec, usually on the same schedule as your GST returns (annual, quarterly, or monthly). Revenu Québec's online portal is called clicSÉQUR (for businesses) or accessible through the My Account for Businesses service.

Key points:

• QST returns are usually due on the same day as GST returns — but they're filed separately
• Revenu Québec administers both QST and provincial income tax for Quebec — they're a single body for all provincial taxes
• The penalties and interest structure for QST is similar to the CRA's GST/HST penalties

GST/QST for Payroll in Quebec

Quebec has its own parental benefits program (QPIP — Quebec Parental Insurance Plan) which replaces part of the federal EI parental benefits. Quebec workers pay into QPIP instead of federal EI parental benefits, and EI rates in Quebec are lower than in other provinces as a result. Employers in Quebec manage both federal EI remittances and QPIP contributions — through the CRA for EI and through Revenu Québec for QPIP.