BUSINESS EXPANSION CHECKLIST: MULTI-PROVINCE GST/HST & QST REGISTRATION

Expanding your business across provincial borders in Canada brings new opportunities but also new sales tax obligations. Each province operates under different rules for GST, HST, QST, or PST, and expansion requires adjusting your invoicing, tax collection, registration, and accounting systems. Many Quebec businesses expanding across Canada make costly mistakes such as charging the wrong tax rate, failing to register in HST provinces, or misunderstanding place-of-supply rules. This multi-province GST/HST & QST registration checklist provides a complete roadmap to help your business expand smoothly and stay fully compliant.

A strong sales tax strategy ensures proper pricing, legal compliance, accurate filings, and minimal audit risk when operating in multiple provinces.

LEGAL AND REGULATORY FRAMEWORK

Canadian sales tax compliance depends on where your customers are located and where the supply is deemed to occur. Key systems include:
• GST (federal, 5%)
• QST (Quebec, 9.975%)
• HST (combined federal-provincial tax in ON, NB, NS, NL, PEI)
• PST (separate provincial sales tax in BC, SK, MB)

GST/HST is governed by the Excise Tax Act.
QST is governed by the Quebec Taxation Act.
PST regimes follow provincial legislation.

Businesses must follow place-of-supply rules, register in jurisdictions where they operate or supply taxable products/services, and charge the correct provincial tax.

KEY COURT DECISIONS

Courts across Canada have affirmed that:
• place-of-supply rules determine which tax applies
• businesses must register in provinces where they make taxable supplies
• lack of knowledge does not excuse incorrect tax collection
• incorrect invoicing and misapplied tax result in reassessments
• online and digital providers must comply with destination-based tax rules

These rulings reinforce that interprovincial expansion requires a precise, proactive tax registration strategy.

WHY CRA AND REVENU QUÉBEC TARGET EXPANDING BUSINESSES

Expanding businesses often trigger reviews because they frequently:
• charge incorrect HST/GST/QST/PST
• misunderstand cross-border tax obligations
• fail to register in new provinces
• misclassify the place of supply
• apply QST to out-of-province transactions
• apply GST where HST is required
• make inconsistent filings across jurisdictions

Expansion without proper tax alignment is a major audit trigger.

BUSINESS EXPANSION CHECKLIST: MULTI-PROVINCE GST/HST & QST REGISTRATION

Use this checklist before expanding into any new province in Canada.

1. Identify your expansion provinces
   Determine where you will supply goods or services:
   • physically
   • digitally
   • through shipping
   • through contractors
   Different provinces = different tax rules.

2. Understand the tax system in each province
   Your expansion province uses:
   • GST only (AB, NT, NU, YK)
   • GST + PST (BC, SK, MB)
   • HST (ON, NB, NS, NL, PEI)
   • QST + GST (Quebec)

3. Apply place-of-supply rules
   Goods: tax based on delivery location.
   Services: tax based on customer location.
   Digital goods/services: tax based on customer location.
   Cross-border errors are the biggest cause of misapplied tax.

4. Determine if you must register in other provinces
   You may need to register for:
   • HST (CRA) if supplying taxable goods/services in HST provinces
   • PST (provincial systems) for BC, MB, SK
   • QST if supplying taxable goods/services to Quebec customers

Non-resident suppliers must also follow registration rules.

5. Register for required tax numbers
   Depending on the province, register for:
   • HST
   • PST
   • QST
   • GST (if not already registered)
   Ensure tax numbers appear on all invoices once registered.

6. Update invoicing templates
   Your invoices must reflect:
   • correct tax rate (GST, HST, QST, PST)
   • your registration numbers
   • clear descriptions of goods/services
   • correct customer information
   • proper tax breakdown by jurisdiction

7. Configure accounting and POS systems
   Update tax codes for each province.
   Examples:
   • HST 13% for Ontario
   • HST 15% for NB/NS/NL/PEI
   • BC PST 7%
   • Manitoba RST 7%
   • Saskatchewan PST 6%

8. Update e-commerce platform settings
   Shopify, Amazon, WooCommerce, Etsy, and Squarespace must be configured to:
   • identify customer location
   • apply correct provincial taxes
   • handle cross-border transactions
   • generate compliant invoices

Many platforms do not handle PST automatically and require manual setup.

9. Review contracts and pricing
   Expansion may affect:
   • contract tax clauses
   • quoted prices
   • billing schedules
   • subcontractor tax treatment

Ensure your pricing includes or excludes tax appropriately.

10. Track revenue separately by province
    Maintain segmented sales reports for accurate tax filings across jurisdictions.

11. Maintain separate ITC/ITR/PST records
    Different provinces allow or disallow credits differently:
    • PST often cannot be recovered like GST/QST
    • HST/GST require ITC documentation
    Keep province-specific records organized.

12. Prepare for multi-jurisdictional filings
    Set up calendars for:
    • PST filing deadlines
    • HST/GST filing periods
    • QST filings (FPZ-500-V)
    Ensure payments are remitted to the correct authority.

13. Monitor compliance monthly
    Cross-province errors compound quickly. Review transactions monthly.

14. Prepare an audit-ready binder
    Multi-province sellers face higher audit risk. Document:
    • tax registrations
    • tax code setups
    • place-of-supply logic
    • customer locations
    • sales reports by province
    • ITC/PST documentation

MACKISEN STRATEGY

Mackisen CPA helps Quebec businesses expand across Canada by designing full multi-province GST/HST/QST/PST compliance systems. We register your business in all necessary jurisdictions, update invoicing systems, configure accounting platforms, and build province-by-province tax matrices. Our team ensures your place-of-supply rules are applied correctly across goods, services, and digital products.

We also support you with ongoing filings, reconciliations, and audit defense when dealing with multi-jurisdictional sales.

REAL CLIENT EXPERIENCE

A Montreal e-commerce company expanded into Ontario and Atlantic Canada but continued charging GST instead of HST. Mackisen corrected the tax setup, filed adjustments, and prevented a reassessment.

A Quebec construction firm began taking contracts in BC and Saskatchewan without PST registration. Mackisen registered the business properly and aligned invoicing to avoid penalties.

A tech startup selling digital products nationwide incorrectly applied QST to non-Quebec customers. Mackisen rebuilt their tax matrix and corrected prior filings.

COMMON QUESTIONS

Do I need to register for HST if I sell into Ontario
Yes, if you carry on business or have significant sales to Ontario customers.

Do I need PST registration in BC/SK/MB
Often yes. PST systems operate independently from GST.

Is QST required if I am not in Quebec
Yes, if you supply taxable goods or services to Quebec customers under the non-resident rules.

Can my accounting software handle all provinces
Most can — but tax codes must be set up correctly.

Are multi-province sellers audited more often
Yes. Cross-border tax errors are common, making this group higher-risk.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal specializes in multi-province sales tax compliance. We ensure your GST/HST/QST/PST registrations, invoicing, and reporting are accurate across Canada protecting your business from penalties and ensuring smooth expansion.