If a business operates in Canada, it may be required to collect and remit Goods and Services Tax (GST) and, if located in Quebec, Quebec Sales Tax (QST). These taxes are part of Canada’s value-added tax system.
Businesses collect tax on most goods and services sold and may claim credits for the tax paid on business purchases. This system ensures that tax is ultimately paid only by the final consumer, not by businesses within the supply chain.
A business must register for GST and QST in Quebec if total revenues from taxable supplies exceed $30,000 in a single calendar quarter or over four consecutive quarters. GST is a federal tax of 5% applied across Canada, while QST is a provincial tax of 9.975%, administered by Revenu Québec.
Even if revenues are below the registration threshold, voluntary registration allows claiming Input Tax Refunds (ITRs) on QST paid for business expenses.
Sales Tax Categories in Quebec
Sales tax in Quebec consists of the federal Goods and Services Tax (GST) and the provincial Quebec Sales Tax (QST). The taxability of supplies depends on three categories: fully taxable, zero-rated, and exempt.
For taxable supplies, you charge both GST and QST. For zero-rated supplies, you charge 0% tax but can still claim input tax credits (ITCs) for the tax you paid on expenses. For exempt supplies, you do not charge tax and cannot claim ITCs.
Fully Taxable Supplies
These are most goods and services and are subject to both the 5% GST and the 9.975% QST in Quebec. Examples include:
- Most non-basic groceries and beverages, such as soft drinks, candies, snack foods, alcoholic beverages, and prepared meals from restaurants or take-out.
- Goods and services like clothing, footwear, household goods, electronics, and vehicle repairs.
- Commercial services, such as legal, accounting, hair salon, and real estate services.
- Hotel accommodations.
- New residential housing.
Zero-Rated Supplies
These supplies are taxable at 0%, which means you charge no GST or QST but can claim ITCs for the taxes you paid on related business purchases. Examples include:
- Basic groceries: Most food and beverages for human consumption, including meat, fish, eggs, dairy, vegetables, fruits, and bread.
- Prescription drugs and dispensing services: Provided by a licensed pharmacist for medical purposes.
- Certain medical devices: Including hearing aids, artificial teeth and limbs, wheelchairs, and insulin pumps.
- Feminine hygiene products.
- Exports: Most goods and services sold to non-residents of Canada.
- Printed books: That have an International Standard Book Number (ISBN).
Exempt Supplies
You do not charge GST or QST on these supplies and cannot claim ITCs for expenses related to providing them. Examples include:
How to Register?
GST Number
Register online: Canada Revenue Agency or by phone: 1-800-959-5525. Business Number ends in RT0001.
QST Number
Register online: Revenue Quebec QST Number ends in TQ0001.
QST Filing Frequency
The filing frequency for your Québec Sales Tax (QST) return depends on your business's total annual taxable sales. You will be assigned a filing frequency—monthly, quarterly, or annually—when you register for the QST and the federal GST/HST.
Note for annual filers: If you file annually and have a net QST amount payable of $3,000 or more, you may be required to pay quarterly installments.
| Annual taxable sales | Required filing period | Filing deadline |
|---|---|---|
| Over $6 million | Monthly | One month after the end of the reporting period. |
| Over $1.5 million to $6 million | Quarterly | One month after the end of the reporting period. |
| $1.5 million or less | Annual | Three months after the end of your fiscal year. |
Example: Sophie’s Design Studio
| Business number (BN) | 12345 6789 RT0001 (GST account) |
| Quebec enterprise number (NEQ) | 2267891234 |
| QST registration number | 1234567890 TQ0001 |
| Fiscal period | January 1, 20xx, to December 31, 20xx |
| Main activity | Graphic design services (NAICS code 541430) |
| Business address | 245 Rue Saint-Denis, Montreal, QC H2X 3J8 |
Income and Expense Summary
| Description | Amount |
|---|---|
| Gross Sales (before GST/QST) | $80,000.00 |
| GST collected (5%) | $4,000.00 |
| QST Collected (9.975%) | $7,980.00 |
| Total Collected From clients | $91,980.00 |
| Expenses | |
| Office Rent | $12,000.00 |
| Advertising & Promotion | $2,000.00 |
| Supplies | $1,500.00 |
| Internet & Phone | $1,200.00 |
| Meals (50% allowable) | $600.00 |
| Professional fees (accountant) | $800.00 |
| Vehicle Expenses (business portion) | $3,500.00 |
| Total Expenses | $21,600.00 |
| Net Income | $58,400.00 |
Posted on 09 July, 2026