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Canada (Quebec)

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GST in Canada guide

Quebec sales tax for digital service providers

In the 2018–19 budget, Quebec announced it will implement a mandatory specified registration system for suppliers with no physical or significant presence in Quebec (nonresident suppliers) to ensure the QST is collected and remitted in the context of the digital economy. Suppliers with no physical or significant presence in Quebec will be required to collect and remit the QST on taxable incorporeal movable property and services they supply in Quebec to specified Quebec consumers.

Mandatory registration will apply to non-resident suppliers if the value of the consideration for all taxable supplies made by the supplier in Quebec to consumers exceeds CAD 30,000.

Quebec sales tax rates

The term “taxable supplies” refers to supplies of goods and services that are subject to GST/HST.

The HST rate of 15% applies in Nova Scotia, New Brunswick, Newfoundland and Labrador, and in Prince Edward Island. QST at a rate of 9.975% applies in the province of Quebec. The effective combined GST/QST rate is 14.975%.

The 5% GST rate applies to supplies of property and services made elsewhere in Canada: in the provinces of British Columbia, Alberta, Saskatchewan and Manitoba and in the Yukon, Northwest and Nunavut Territories. A zero rate (0%) applies to a limited range of supplies of property and services. Although the tax does not apply to zero-rated supplies, a registrant may claim input tax credits with respect to these supplies. As a result, zero-rated supplies bear no tax.

Late – registration penalties

Every person who is engaged in commercial activity in Canada is required to apply to be registered for the GST/ HST before the 30th day after the day the person first makes a taxable supply in Canada. Interest is payable at the prescribed rate where a person fails to remit or pay an amount on account of tax when required under the GST/HST legislation.

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