New Measures Relating to the Québec Sales Tax (QST) for Suppliers Located Outside of Québec

The new legislation will have a significant impact on suppliers located outside of Québec.

Summary

  • Suppliers with no physical or significant presence in Québec are currently not required to register with Revenu Québec for collecting and remitting the QST.
  • A new specified registration system will be mandatory for suppliers outside of Québec that meet the "specified threshold".
  • "Specified threshold" of a non-resident supplier for a particular calendar month means:
    • Taxable supplies to consumers exceeding $30,000 in the last twelve months;
    • "Consumer" means an individual who acquires the property or the service for personal consumption.
  • Once the "specified threshold" is met, suppliers outside of Québec must register for the QST using the Registration service reserved for suppliers outside Québec and collect QST from all clients in Québec (individuals or businesses) that are not registered for QST.
  • The QST paid will not be eligible to Input Tax Refund (ITR) by clients.

Suppliers

Intangible Personal Properties

Services

Tangible Personal Properties

Date

Located outside Canada

Applicable

Applicable

Non-Applicable

January 1, 2019

Located in Canada but outside of Québec

Applicable

Applicable

Applicable

September 1, 2019

Key points to keep in mind

  • It is important at this stage to determine if your business has met the "specified threshold" in the preceding twelve-month period.
  • If you meet the "specified threshold", you must register for the QST using the Registration service reserved for suppliers outside Québec.
  • Depending on the services provided or products sold, to correctly determine the volume of sales from individuals buying your products or services for personal consumption could be challenging.
  • Once the "specified threshold" is met, you have to contact all your clients located in Québec to obtain their QST number.
  • Filing will be performed quarterly.

Contact person

For further information, please contact Pierre Nadeau, Indirect Tax manager  or your trusted Mazars advisor.

Want to know more?

Subscribe

Inovation 4 1600 per 900px.jpg

Subscribe

Subscribe now to our mailing list to receive our publications, articles, invitations to our events, and more.

Our expertise

Tax 1 1600 per 900px.jpg

Tax

With a comprehensive range of tax services, Mazars will help you maximize your benefits, safeguard your assets and comply with taxation rules.