New Registration Requirements for Quebec Sales Tax

If you are a supplier located outside Canada, new QST registration requirements may apply effective January 1, 2019. Here are the QST basics that you should be aware of.

Does this apply to your business?

This requirement applies to suppliers who sell any of the following to consumers (i.e., individuals making the purchase for personal use) residing in Quebec: services, intangible properties (e.g., electronic subscription to software or access to digital content), or goods (but only if registered for GST/HST purposes). This requirement does NOT apply if the sales made to consumers in Quebec on an annual basis are $30,000 or less.

• The $30,000 test is determined on a rolling 12-month period over time.
• The $30,000 does not include sales of services and intangible properties made in Quebec through a third-party digital platform. In that case it is the digital platform itself that may now be required to register for QST purposes and charge the tax on the sales it makes on behalf of the non-resident business.

Those requirements will be extended to suppliers located outside Quebec but within Canada effective September 1, 2019.

How can you register?

Registration can be done via the Revenu Quebec website. For more details on the process visit the Revenu Quebec site here.

What are the QST filing and payment requirements?

• A QST return must be filed for each calendar quarter.
• The QST return must be filed electronically and is due at the end of the month after the end of calendar quarter.
• Payments must be made electronically (either through a Canadian bank or through international transfer).
• There are NO input tax refund available under that registration. If the non-resident business is required to pay any QST on its purchases, it should register for QST purposes under the “normal” QST regime to be able to recover that tax.

If you have any questions about the new QST registration requirements under the new system for non-residents of Quebec (or would like to consider the alternative of registering under the normal QST regime), Crowe Soberman can assist in the process. Contact your tax advisor or Indirect Tax Partner, Frédéric Pansieri.

Specific professional advice should be obtained prior to the implementation of any suggestion contained in this article. Contact your Crowe Soberman advisor for more information.