Adjustments to Quebec Gross sales Tax (QST) Efficient January 1, 2019


On June 12, 2018, Quebec Invoice 150 acquired Royal Assent. The Invoice contains modifications referring to the appliance of the Quebec Gross sales Tax (QST) to provides made by suppliers with no important presence in Quebec by the implementation of a brand new “specified registration system.”


What does this imply precisely?

As the present laws is written, non-residents of Quebec solely have a requirement to register for the QST if they’ve a everlasting institution or are thought-about to be “carrying on enterprise” in Quebec.

At the moment the burden of reporting and remitting QST is commonly handed alongside from the non-resident vendor to the resident shopper, which creates two issues:

  1. There are important tax income losses as a result of low charges of compliance by customers who’re required to self-assess QST. The Minister estimates that $270 million of QST was unreported in 2017 as a result of low charges of compliance by customers in respect of on-line transactions with non-resident suppliers.
  2. Suppliers outdoors Quebec are receiving a aggressive benefit towards Quebec companies, as Quebec companies are required to gather and remit QST on their provides in Quebec.


Registration and Assortment Requirement

This alteration contains the introduction of a wholly new QST registration system. Non-resident suppliers whose mixture consideration acquired in respect of taxable provides made to individuals who’re specified Quebec customers is not less than $30,000, during the last 12-month interval. They are going to be required to register below a brand new specified registration system.


A specified Quebec shopper will likely be an individual not registered for QST whose standard place of residence is in Quebec.


Though a non-resident of Quebec could develop into registered below this new specified registration system, it won’t be thought-about a registrant for different functions throughout the QST system. They may also not be capable of declare enter tax refunds in respect of QST paid on property and providers acquired in the middle of their business actions. A non-resident required to register below the desired registration system that meets the present necessities for non-obligatory registration below the final registration system could elect to register below the final registration system as an alternative of the desired registration system.


When does this develop into efficient?

These measures will come into impact as of January 1, 2019 in respect of non-residents outdoors Canada, and as of September 1, 2019 in respect of non-residents situated in Canada outdoors Quebec.


We all know how exhausting it’s to maintain up with the fixed tax modifications. In the event you want any help, please attain out to myself at blake.deluca@rlb.ca or name 519-822-9933 and a member of our crew could be completely satisfied to assist!

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