The Quebec Sales Tax (QST) is a value-added tax levied on the sale of most goods and services in the province of Quebec. As of 2024, the QST rate remains at 9.975%, and businesses operating in Quebec or making sales to Quebec residents must comply with the rules and regulations set by Revenu Québec. This tax applies in addition to the federal Goods and Services Tax (GST), and together, they impact the final price paid by consumers. This document provides an overview of the key aspects of QST for 2024, including the applicable rates, registration thresholds, and filing requirements for businesses.
| Aspect | Details |
| QST Rate | 9.975% |
| Threshold for Registration | $30,000 in gross annual revenue |
| Goods and Services Subject to QST | Most goods and services, including digital products, are taxable. Exemptions include groceries, prescription drugs, etc. |
| Out-of-Province and Foreign Sellers | Required to register and collect QST if selling to Quebec residents (since 2019). |
| Input Tax Refund (ITR) | Businesses can claim ITR for QST paid on business expenses. |
| Filing and Remittance | Collected QST must be remitted to Revenu Québec monthly, quarterly, or annually depending on business size. |
Who Must Register for QST?
In Quebec, any business or individual who sells taxable goods or services and exceeds the $30,000 gross annual revenue threshold is required to register for the QST. This includes not only Quebec-based businesses but also out-of-province and foreign businesses selling to Quebec residents. It’s essential for businesses to be aware of these rules to avoid penalties and interest.
Goods and Services Exempt from QST
While the majority of goods and services in Quebec are subject to QST, certain items are exempt. This includes essential goods such as basic groceries, prescription medications, and certain medical devices. Some financial services and childcare services are also exempt. Businesses should verify which products are exempt to avoid incorrectly charging QST.
Charging QST
QST is generally added to the selling price of goods and services, and businesses are responsible for ensuring that they collect the correct amount. The QST is calculated after applying the GST, effectively compounding the total tax. Businesses must show both the GST and QST separately on invoices.
Filing QST Returns
Businesses that are registered for QST must file returns with Revenu Québec on a monthly, quarterly, or annual basis, depending on their annual sales. Returns must include the total QST collected and the input tax refunds (ITRs) that the business is claiming for QST paid on business expenses. Filing deadlines are strictly enforced, and businesses can face penalties for late or inaccurate filings.
QST and E-commerce
Since 2019, Quebec has required out-of-province and foreign businesses selling digital products and services to Quebec residents to register and collect QST. This policy aims to level the playing field between local and international sellers. Digital goods such as streaming services, software, and online subscriptions are subject to QST, and businesses must comply with Quebec’s digital tax rules.
Penalties and Interest for Non-Compliance
Failing to comply with QST rules, including incorrect registration, failing to collect tax, or not filing returns on time, can result in penalties and interest. Revenu Québec monitors compliance closely, and businesses may be audited to ensure proper QST collection and remittance. Interest is charged daily on overdue amounts, and penalties may be as high as 15% of the uncollected or unremitted taxes.
Input Tax Refund (ITR) Claims
Registered businesses can claim Input Tax Refunds (ITRs) for the QST paid on business-related purchases. This includes expenses such as supplies, equipment, and professional services. Proper documentation, including receipts and invoices, is essential for claiming ITRs. Keeping accurate records will help businesses minimize their QST liability and avoid complications during audits.
