QST in Quebec: What Small Business Owners Need to Know

If your business is in Quebec — or if you sell to customers in Quebec from another province — you likely need to deal with two separate sales taxes. Most of Canada uses the Harmonized Sales Tax (HST), a single combined federal-provincial tax collected by the CRA. Quebec is different: it kept its own provincial sales tax system, the QST (Taxe de vente du Québec / Quebec Sales Tax), administered by Revenu Québec.

GST vs. QST: The Basics

Together, the combined tax rate in Quebec is 14.975% (5% + 9.975%). If your business is based in Quebec, Revenu Québec administers both taxes: you register once, receive a GST number and a QST number, and file a single combined GST/QST return with Revenu Québec. If your business is based outside Quebec, you deal with the CRA for the GST and with Revenu Québec for the QST, on separate returns. The two taxes have their own registration numbers and their own rules in some areas.

Who Needs to Register for QST?

The QST registration threshold mirrors the federal GST threshold: $30,000 in taxable revenues over the past four consecutive calendar quarters (or in a single quarter). If you're already required to register for GST because of the $30,000 threshold, you're also required to register for QST — these thresholds run in parallel.

You need to register for QST if:

• Your business is based in Quebec and your taxable revenues exceed $30,000
• You're a non-resident of Quebec selling taxable supplies to Quebec consumers (see the Digital Economy rules below)
• You're voluntarily registering before the threshold is reached (same logic as GST)

How to Register for QST

QST registration is done through Revenu Québec — not the CRA. You register online at revenuquebec.ca or by calling Revenu Québec directly. You'll receive a QST registration number (ending in TQ followed by four digits, e.g., 1234567890TQ0001). If your business is based in Quebec, the same application also registers you for the GST.

If your business is based outside Quebec and you're already registered for GST/HST with the CRA, you still need a separate QST registration with Revenu Québec. If your business is based in Quebec, you register for both taxes at once with Revenu Québec, which issues both numbers.

Charging QST: What Gets Taxed?

The QST applies to most goods and services sold in Quebec, with the same general exemption categories as the GST:

• Taxable at 9.975%: Most goods and services, digital products, software, consulting, professional services, retail sales
• Zero-rated (0% QST): Basic groceries, most prescription drugs, most exports from Quebec
• Exempt: Most healthcare services, financial services, most educational services, long-term residential rental

When you invoice a Quebec-based client, a correctly structured invoice should show two separate tax lines:

• GST (5%) = [amount] — Registration: [your BN RT number]
• QST (9.975%) = [amount] — Registration: [your QST TQ number]

The Digital Economy Rules: Non-Residents Selling to Quebec

Since 2019 and expanded since, Quebec requires non-resident businesses (including businesses from other provinces) to register for QST if they sell digital services or products to Quebec consumers. This includes:

• Software, apps, and digital subscriptions
• Online platforms and streaming services
• E-commerce platforms facilitating sales to Quebec buyers
• Cloud computing services

If you're a Toronto-based SaaS company selling to Quebec customers, for example, you likely need to register for QST. There's a simplified registration process for non-residents at revenuquebec.ca.

Input Tax Refunds (ITRs): Getting QST Back

The QST equivalent of federal Input Tax Credits (ITCs) is called an Input Tax Refund (ITR). If you're QST-registered and you paid QST on purchases made for your commercial activities, you can claim an ITR to recover that tax on your return (the same combined GST/QST return if your business is based in Quebec).

The rules for ITRs closely mirror those for federal ITCs:

• Only purchases for your commercial activities qualify
• Meals and entertainment are limited to 50% ITR
• Documentation requirements are similar (invoices with supplier's QST number for large purchases)
• You have four years to claim ITRs you missed

Filing QST Returns

If your business is based in Quebec, you file one combined GST/QST return with Revenu Québec (annual, quarterly, or monthly). Businesses based outside Quebec file their QST returns with Revenu Québec, usually on the same schedule as their GST/HST returns. Revenu Québec's online portal is called clicSÉQUR (for businesses) or accessible through the My Account for Businesses service.

Key points:

• For Quebec-based businesses, GST and QST are filed together on one return, due on the same day
• Revenu Québec administers both QST and provincial income tax for Quebec — they're a single body for all provincial taxes
• The penalties and interest structure for QST is similar to the CRA's GST/HST penalties

GST/QST for Payroll in Quebec

Quebec has its own parental benefits program (QPIP — Quebec Parental Insurance Plan) which replaces part of the federal EI parental benefits. Quebec workers pay into QPIP instead of federal EI parental benefits, and EI rates in Quebec are lower than in other provinces as a result. Employers in Quebec manage both federal EI remittances and QPIP contributions — through the CRA for EI and through Revenu Québec for QPIP.

If you operate outside Québec, the federal rules differ. Read our complete guide on GST/HST registration across Canada to understand federal requirements alongside QST obligations.