New Measures Relating to the Québec Sales Tax (QST) for 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.

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.