• General information
• New GST tax rate - Businesses
• What is the HST?
• Special rules under the QST system
• Trade-ins of road vehicles
• Registration
• Collecting GST and QST
• Preparing invoices
• When the QST and GST are payable
• Reporting QST and GST
• Tax instalments
• Methods of payment
• Guidelines for advertising
• Contracts of exchange
• Documents concerning the GST and the QST
• Remittance schedules
• Taxable benefits

General information

The three most common consumption taxes in Québec are:

• the Québec sales tax (QST)
• the goods and services tax (GST)
• the harmonized sales tax (HST)

Under an agreement between the federal and Québec governments, Revenu Québec is responsible for administering the GST/HST in Québec. Consequently, Revenu Québec receives and processes the applications for GST/HST registration of all persons carrying on a commercial activity in Québec.

General rules

Most property and services are subject to the GST/HST and the QST.

• The GST/HST is calculated on the selling price at the rate of 5%.
• The QST is calculated on the selling price (including the GST) at the rate of 7.5%.

Example

The taxes are calculated as follows on a taxable item with a selling price of $100:

 

Selling price	$100.00
GST ($100 x 5%)	$5.00
QST ([$100 + $5] X 7.5%)	$7.88
Total	$112.88

Some property, such as basic groceries and prescription drugs, are zero-rated, which means they are taxed at the rate of 0%. Other property and services, such as health services and long-term residential leases, are tax-exempt, which means that GST and QST do not apply to them.

Agents

As a merchant, you must generally collect the taxes on your taxable sales. In collecting the taxes you become an agent of Revenu Québec, and must register for the GST/HST and the QST.

If you are a registrant, you can generally recover the GST and QST you paid on property and services purchased in the course of your business activities. The GST is reimbursed in the form of input tax credits (ITCs), the QST in the form of input tax refunds (ITRs).

For more detailed information on

• how to calculate, collect and remit the taxes,
• the application of the GST and the QST to various types of transactions,
• the use of coupons,
• meal and entertainment expenses,
• sales to diplomats and governments, and
• refund applications,

refer to guide IN-203-V, General Information Concerning the QST and the GST/HST.