DO I HAVE TO COLLECT QST FOR ONLINE SALES IN QUEBEC?

If you sell products or services online, one of the most important questions you must answer is: Do I need to collect QST from my Quebec customers? Whether you operate a Shopify store, sell digital products, run a subscription platform, or invoice clients by email, Quebec has strict rules about when QST must be charged. Many online sellers are surprised to learn that they must collect QST even if they have no physical presence in Quebec — and penalties can apply if they don’t. This guide explains when QST applies to online sales and how to stay fully compliant.

Understanding QST rules protects your business from under-collection, incorrect invoicing, and Revenue Québec reviews.

LEGAL AND REGULATORY FRAMEWORK

QST obligations come from the Quebec Taxation Act, strengthened by Quebec’s modernized digital tax rules. QST applies to online sales when:

• the customer is located in Quebec
• the seller is registered or required to register
• the supply is taxable (most goods and services are)

Quebec’s rules apply to:

• Quebec-based businesses
• Canadian sellers outside Quebec
• foreign and non-resident digital sellers

Place-of-supply rules determine when QST applies, even in the digital economy.

KEY COURT DECISIONS

Courts have confirmed:

• online and digital transactions are taxable based on customer location
• Quebec can require non-resident sellers to collect QST
• sellers cannot rely on software defaults to justify under-collecting tax
• customers’ billing address is not enough — delivery and consumption location matter
• digital services are generally taxable unless explicitly exempt

Courts consistently support Revenue Québec’s authority to enforce QST collection from online sellers.

WHY ONLINE SELLERS STRUGGLE WITH QST

Digital and e-commerce sellers often make mistakes because:

• Shopify or Amazon settings are misconfigured
• tax codes are not set for Quebec
• online stores assume that physical presence determines tax
• digital services are misclassified as exempt
• seller misunderstands “small supplier” rules
• sellers believe QST applies only to Quebec-based companies

These mistakes often lead to under-collected tax and return corrections.

DO YOU HAVE TO COLLECT QST FOR ONLINE SALES? HERE IS THE CLEAR ANSWER:

1. If your customer is in Quebec, you generally must collect QST

This applies whether you sell:

• physical products
• digital downloads
• SaaS or subscriptions
• consulting or professional services
• training or online education
• memberships or programs

Customer location, not your location, determines QST.

2. If you exceed the $30,000 threshold, QST registration is mandatory

If your worldwide taxable revenues exceed $30,000 over four consecutive quarters, you must register and collect QST — even for online sales.

3. If you sell taxable goods shipped to Quebec, you must charge QST

Shipping location = place of supply. If the goods arrive in Quebec, QST applies.

4. If you sell services consumed in Quebec, QST applies

Example:
A consultant in Ontario provides online coaching to a Quebec client → QST applies.

5. If you are a non-resident seller, special QST rules apply

Quebec requires many out-of-province and international digital sellers to register under the Specified Registration System if they:

• sell to Quebec consumers, and
• do not have QST registration already

This includes foreign platforms, SaaS companies, and subscription services.

6. If you make only exempt supplies, QST does not apply

Examples:
• certain health services
• certain education or training
• certain financial services

Exempt suppliers neither collect QST nor claim refunds.

7. If delivering outside Quebec, QST does not apply

Sales shipped to other provinces follow GST/HST/PST rules depending on destination.

8. If selling internationally, QST usually does not apply

Most exports of goods and services are zero-rated.

COMMON QST MISTAKES MADE BY ONLINE SELLERS

• charging GST only to Quebec customers
• forgetting to charge QST on digital services
• misapplying tax on subscriptions
• relying on Shopify’s default tax settings
• applying QST based on billing address, not delivery
• confusion between business and consumer rules
• misinterpreting the $30,000 threshold
• thinking QST does not apply because the business is outside Quebec

These errors frequently trigger refund verifications or adjustments.

MACKISEN STRATEGY

Mackisen CPA helps online sellers configure their platforms and accounting systems to correctly apply QST and GST across Canada. We determine registration obligations, review platform settings (Shopify, Amazon, Etsy, WooCommerce), and build a clean, compliant tax configuration. Our team also prepares GST/QST returns, fixes filing errors, and represents online sellers during Revenue Québec verifications.

REAL CLIENT EXPERIENCE

A Shopify seller charged GST but forgot QST to Quebec clients. Mackisen corrected configuration and submitted adjustments.

An online coach based in Ontario did not realize QST applied. Mackisen registered them for QST and updated all invoices.

An international SaaS provider was required to register under Quebec’s non-resident rules. Mackisen handled the registration and set up correct billing.

COMMON QUESTIONS

Do I charge QST if I sell only digital subscriptions?
Yes, digital products and SaaS are taxable in Quebec.

If I’m outside Quebec, do I need to register?
Yes, if you sell taxable services or goods to Quebec consumers.

Does Shopify automatically charge QST?
Only if properly configured. Manual setup is often required.

Do business customers follow different rules?
Yes, B2B rules may differ based on registration status.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps online sellers correctly apply QST and stay compliant with Quebec’s evolving digital tax rules. We ensure clean invoicing, proper setup, and full tax compliance across all platforms.