CRA GST/QST Convenience Store (Dépanneur) Audit — Montreal CPA Firm Near You: Defending Cash Sales, Lottery, Tobacco, Fuel, POS Accuracy & ITCs

A CRA GST/HST + Revenu Québec QST Convenience Store Audit targets dépanneurs and corner stores because they handle high-risk mixed products, including taxable, exempt, zero-rated, regulated, and cash-heavy categories.

Convenience stores face the highest combined CRA + RQ audit risk due to:
• daily cash transactions
• lottery sales (special rules)
• tobacco & vape sales (regulated + highly audited)
• fuel & gasoline (special GST/QST rules)
• mixed taxable + zero-rated groceries
• coupons, discounts, prepaid cards
• beer/wine/cider (alcohol rules)
• POS systems that often misclassify SKUs
• high shrinkage
• intermingled personal vs business purchases
• large, recurring ITCs/ITRs

Mackisen CPA Montreal specializes in defending these audits by rebuilding POS tax logic, reconciling sales to deposits, correcting inventory classification, and preparing CRA- and RQ-ready audit binders.

Legal Foundation

GST/HST (CRA)

• Excise Tax Act s.165 — GST/HST on taxable goods

• Schedule VI — zero-rated groceries (milk, bread, produce, basic food)

• Schedule V — exempt goods in limited cases

• s.221 — requirement to collect GST/HST

• s.169 — ITC documentation requirements

• s.286 — strict recordkeeping rules

QST (Revenu Québec)

• Québec Sales Tax Act (QSTA ss.1–3) — taxable vs zero-rated items

• QSTA s.18.1 — documentation requirements for ITRs

• Tax Administration Act (TAA) — RQ audit powers

Special Product Rules

• Alcohol → fully taxable; must follow SAQ/regulatory requirements

• Tobacco → taxable + controlled; audit red flags

• Lottery → no GST/QST on ticket face value, but commissions are fully taxable

• Fuel → GST/QST applies only to the fuel amount, not excise tax portions

• Telecom cards / prepaid cards → special GST/QST timing rules

• Gift cards → GST/QST applies only when redeemed, not when sold

Case Law

• Shoppers Drug Mart Case — coupon rules must be applied precisely

• Northwest Company Inc. — missing invoice details = ITC denied

• Royal Bank v. Canada — strict documentary proof required for credits

Learning insight: Convenience stores must apply five tax categories correctly — CRA/RQ audits check for mistakes line by line.

Why CRA & RQ Audit Convenience Stores

Authorities select dépanneurs for audit when they detect:

Sales Risks

• cash sales inconsistent with deposits
• POS categories miscoded (taxable vs zero-rated)
• tobacco/alcohol revenue mismatches
• prepaid card & lottery transactions misreported
• CRA/RQ discrepancies between GST and QST returns

Expense Risks

• ITCs/ITRs claimed on personal or mixed-use purchases
• invoices missing GST/QST numbers
• fuel purchases without valid invoices
• tobacco inventory shrinkage unexplained
• large ITC claims for renovations/equipment

Operational Risks

• owner-operator not reporting personal withdrawals
• “double coding” items (zero-rated vs taxable)
• expired product write-offs not documented
• payments to suppliers made in cash
• staff meals, family consumption, or internal use of inventory

Learning insight: RQ uses data analytics comparing your dépanneur to others in the same neighbourhood — deviations trigger audits.

CRA/RQ Convenience Store Audit Process

1. Authorities request:
   – POS Z-reports (daily, monthly)
   – tobacco & alcohol purchase logs
   – Loto-Québec lottery statements
   – fuel purchase & sale records
   – inventory movement logs
   – supplier invoices (must show GST & QST numbers)
   – bank statements
   – merchant statements (Visa, Mastercard, Interac)
   – prepaid card sales records
   – coupon + loyalty program data
   – ITC/ITR documentation

2. They test:
   • taxable vs zero-rated product classification
   • reconciliation: POS → merchant → bank deposits
   • lottery commissions (taxable)
   • fuel GST/QST logic
   • tobacco margin accuracy
   • shrinkage vs missing sales
   • ITC/ITR validity (invoice integrity)
   • promo/discount logic

3. They issue Proposed Audit Adjustments.

4. Mackisen CPA responds with a complete legal + documentary defense binder.

Learning insight: CRA/RQ rely heavily on projection methodology — one POS error can produce a year-long reassessment unless corrected.

Mackisen CPA’s Convenience Store Audit Defense Strategy

• rebuild SKU Tax Classification Matrix for all products
• reconcile POS → merchant deposits → bank → GST/QST returns
• defend zero-rated grocery items with SKU-level documentation
• validate fuel GST/QST treatment
• prepare tobacco/alcohol audit schedules
• rebuild ITC/ITR binder (invoices + proof of payment)
• justify shrinkage using:
– spoilage
– theft
– expired products
– supplier shortages
• correct coupon/discount/point redemption logic
• defend prepaid card and lottery treatment
• prepare CPA-certified CRA/RQ audit binder
• negotiate removal of penalties & interest

Learning insight: Convenience store audits are won on POS data integrity + SKU accuracy + clean ITC documentation.

Common CRA/RQ Findings in Depanneur Audits

• GST/QST overcharged or undercharged due to wrong POS setup
• zero-rated bread, milk, produce miscoded as taxable
• taxable items miscoded as zero-rated (major red flag)
• lottery ticket sales misreported
• tobacco margin inconsistencies
• ITCs denied due to incomplete invoices
• cash sales underreported
• prepaid cards taxed incorrectly
• missing proof for supplier shortages or shrinkage
• alcoholic beverages miscoded

Learning insight: 70–80% of convenience store audit issues stem from POS misclassification.

Real-World Results

• A Montréal dépanneur avoided a $322,000 CRA/RQ reassessment after Mackisen CPA rebuilt SKU classifications and reconciled POS-to-bank variance.
• A convenience store with large tobacco/alcohol inventory reversed a $178,000 ITC/QST denial after we reconstructed supplier documentation.
• A multi-location depanneur chain eliminated penalties by correcting lottery commission GST/QST treatment.
• A fuel-integrated convenience store cleared CRA findings after we rebuilt fuel tax logic and shrinkage analysis.

Learning insight: Accurate, CPA-certified SKU and POS documentation destroys CRA/RQ projections.

SEO Optimization & Educational Value

Primary keywords: GST/QST depanneur audit, CRA convenience store audit, Mackisen CPA Montreal, taxable vs zero-rated grocery audit
Secondary keywords: tobacco audit Québec, lottery GST/QST rules, convenience store POS audit, fuel GST audit

Learning insight: Convenience store audits generate MASSIVE search traffic — ideal for SEO and Google authority.

Why Mackisen CPA Montreal

With 35+ years defending dépanneurs, convenience stores, gas stations, and hybrid retail operations, Mackisen CPA Montreal is Québec’s #1 authority in GST/QST retail audits.
We understand SKU-level rules, POS systems, fuel logic, Loto-Québec treatment, supplier risks, and CRA/RQ audit methodology in detail.

Learning insight: Retail convenience audits require SKU mastery + tax logic + operational expertise — all strengths of Mackisen CPA.

Call to Action

If CRA or Revenu Québec is auditing your dépanneur, convenience store, fuel station, or mixed retail operation, contact Mackisen CPA Montreal immediately:

📞 514-276-0808
📧 info@mackisen.com
🌐 mackisen.com

Learning Conclusion:

A CRA GST/QST Convenience Store Audit tests POS classification, cash sales, zero-rated groceries, tobacco/alcohol rules, fuel taxation, lottery commissions, and ITC/QST documentation.
Mackisen CPA Montreal ensures your store is fully defended and protected from costly reassessments.