Can’t Pay Your QST Bill? 5 Solutions for Cash-Strapped Businesses

Many Quebec businesses especially startups, restaurants, retailers, consultants, and contractors eventually face a moment when their QST bill is due, but cash is tight. Whether caused by slow receivables, seasonal fluctuations, unexpected expenses, or simple timing issues, not being able to pay QST on time is stressful.
But the situation is fixable if handled properly and quickly.

This guide outlines five practical solutions to deal with a QST bill you cannot pay, while minimizing penalties, protecting your account, and avoiding collections.

Solution 1 — File on Time Even if You Can’t Pay

The biggest mistake businesses make is not filing because they cannot pay.

Filing the FPZ-500-V on time:
• avoids late-filing penalties
• prevents estimated assessments
• keeps your account in good standing
• reduces the risk of an audit
• shows good faith to Revenu Québec

You can still pay later but you must file now.

Solution 2 — Make a Partial Payment Immediately

Interest starts the day after the due date.
Even a small payment reduces:

• interest accumulation
• overall QST balance
• internal compliance risk flags

Revenu Québec sees you are trying to comply, which helps if you need a payment arrangement later.

Solution 3 — Set Up a Payment Arrangement with Revenu Québec

If you cannot pay the full balance, Revenu Québec may allow:
• monthly installments
• short-term payment plans
• scheduled automatic withdrawals

To qualify, you must:
• file all outstanding returns
• provide financial information if requested
• make at least one initial payment
• stay compliant during the arrangement

A CPA can negotiate a more flexible schedule and prevent collection escalation.

Solution 4 — Accelerate Cash Flow to Cover QST

Sometimes the issue is timing, not profitability.
Quick cash-flow strategies include:

• invoicing clients immediately
• requesting partial deposits or progress payments
• following up on overdue receivables
• offering early-payment discounts
• delaying discretionary expenses
• renegotiating supplier terms
• reducing non-essential spending temporarily

Even small improvements can generate enough liquidity to cover QST.

Solution 5 — Use Short-Term Financing Strategically

This should be a last resort but it can work when used responsibly.

Options include:
• business line of credit
• short-term loan
• merchant cash advance
• overdraft protection

Important:
• only borrow what you need
• evaluate the interest cost vs. RQ interest penalties
• work with a CPA to assess impact on cash flow

This prevents Revenu Québec from taking collection action.

What Happens If You Do Nothing?

If the bill remains unpaid and no action is taken:

• interest compounds daily
• refunds are frozen and applied to the balance
• your account receives compliance flags
• collection agents may contact you
• bank accounts may be frozen
• liens can be placed on assets
• GST refunds can be intercepted
• audit risk increases significantly

Ignoring the problem is the worst possible choice.

How Mackisen Helps Businesses in This Situation

Mackisen CPA provides:
• full QST balance review
• filing of missing returns
• negotiation with Revenu Québec
• preparation of payment arrangements
• cash-flow planning
• restructuring of bookkeeping systems
• prevention of future arrears

We turn a stressful tax problem into a manageable, strategic plan.

Real Client Stories

A landscaping business couldn’t pay $18,000 in QST.
Mackisen arranged installments, preventing collections and freezing future interest.

A consultant missed a filing and owed more than expected.
Mackisen filed immediately, reduced penalties, and spread payments over several months.

A retailer with seasonal revenue shortages caught up on QST with the help of cash-flow restructuring and supplier negotiation.

Common Questions

Will Revenu Québec forgive my QST bill?
No but they may reduce penalties or accept a payment plan.

Can I negotiate interest?
Only in rare exceptional cases but penalties can often be removed.

Will they audit me if I can’t pay?
Not automatically, but repeated arrears increase risk.

If I file late, will penalties be automatic?
Yes filing on time avoids the biggest penalty.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses handle QST debt responsibly, avoid collections, and regain financial stability with a structured plan.