GST/HST in Quebec: QST Explained

For a sole proprietor, QST Quebec is the provincial sales tax administered by Revenu Québec, and it is charged alongside the federal GST on most taxable sales in the province. If you sell taxable goods or services in Quebec, you generally need to register, collect QST, and remit it on a schedule. Rates, registration thresholds, and filing rules change, so confirm the current figures with Revenu Québec as of the current tax year before you set up your accounts.

How QST and GST work together in Quebec

Quebec is the only province where the provincial government, not the CRA, administers the federal GST. Revenu Québec handles both taxes for registered businesses, which means one registration process, one set of returns, and one remittance covering GST and Quebec sales tax. You still need a federal Business Number (BN) from the CRA for income tax and payroll purposes, but your QST registration sits with Revenu Québec.

For income tax, business income flows onto your personal return, and you report revenue and expenses on Form T2125, Statement of Business or Professional Activities. Sales taxes you collect are not your income — they are held in trust and remitted, so keep them separate from operating cash.

Do you need to register for QST?

Most sole proprietors making taxable sales in Quebec must register once they exceed the small-supplier threshold. Below that threshold, registration is optional — and voluntary registration means you must start charging and remitting tax. Confirm the current threshold on the Revenu Québec website, since it is reviewed periodically.

Factors that affect whether registration is required include:

• Whether your sales are taxable, exempt, or zero-rated
• Your total taxable revenue over the last four calendar quarters
• Whether you qualify as a small supplier
• Whether you sell through an online platform or marketplace

Registration questions often overlap with whether you need to register your sole proprietorship at the provincial level.

Charging and collecting QST

Once registered, you must show GST and QST separately on your invoices, along with your registration numbers. The QST rate applies to the selling price of taxable goods and services; confirm the current percentage with Revenu Québec, since it has been adjusted over time. Keep your invoices clear and consistent — customers and the tax authority both rely on them.

If you hire help, payroll obligations such as CPP and EI come into play as well; see hiring employees as a sole proprietor.

Filing and remitting QST returns

Revenu Québec assigns a filing frequency based on your revenue — typically monthly, quarterly, or annual. Returns and payments are due on set dates, and late filing or late payment can trigger interest and penalties. Most businesses file online through Revenu Québec's online services and can arrange direct debit for payments.

1. Charge GST and QST on taxable sales
2. Track the tax you collect in a separate ledger account
3. Claim input tax refunds on eligible business purchases
4. File the return and remit the net amount by the due date

Input tax refunds (ITRs)

Because QST is a value-added tax, registered businesses can generally claim an input tax refund (ITR) for QST paid on business inputs, mirroring the GST input tax credit. Some purchases are restricted or only partially eligible — meals and entertainment, passenger vehicles, and personal-use items are common examples. Keep receipts and supporting documents, because Revenu Québec can review them during an audit.

Quebec sales tax compared with other provinces

Not every province runs a value-added sales tax. The table below shows how Quebec's model differs from the retail sales taxes elsewhere in Canada; check each province's current rules before selling across borders.

Records, accounts, and common mistakes

Good bookkeeping prevents most QST problems. Frequent errors include charging QST before registration is complete, forgetting to remit tax already collected, mixing personal and business spending, and missing filing deadlines. For a broader look at how Quebec's system interacts with personal income tax, see Quebec sole proprietorship tax, and compare structures in sole proprietorship vs corporation. Contrast Quebec with BC PST, where the province runs its own tax outside the GST return. Record-keeping rules generally require you to keep books and supporting documents for several years — confirm the current retention period with Revenu Québec.

This is general information, not legal or tax advice. Confirm your specific obligations with Revenu Québec, the CRA, or a qualified tax professional.