DO I NEED TO CHARGE QST IF I’M A FREELANCER OR CONSULTANT?

Whether you’re a consultant, designer, IT specialist, coach, photographer, interpreter, marketer, HR trainer, or any other type of freelancer in Quebec, one of your first tax questions is: Do I need to charge QST (and GST) on my invoices? The answer depends on what you do, how much revenue you earn, and whether your services are taxable or exempt. Many freelancers accidentally undercharge tax — or don’t charge tax at all — leading to penalties, retroactive assessments, and out-of-pocket remittances.

This guide explains when QST applies to freelancers and consultants, when registration is mandatory, when voluntary registration makes sense, and common pitfalls to avoid.

LEGAL AND REGULATORY FRAMEWORK

Freelancer and consultant tax obligations are governed by:
• the Quebec Taxation Act (QST)
• the Excise Tax Act (GST)

These laws require any business — including sole proprietors and freelancers — to register and charge QST/GST once they exceed $30,000 in worldwide taxable revenues over:

• the last 4 consecutive calendar quarters, or
• a single calendar quarter

This threshold applies to all freelancers providing taxable services.

KEY COURT DECISIONS

Courts have consistently ruled that:
• freelancers must charge QST/GST once past the threshold
• “I didn’t know” is not a defense for failing to register
• undercharging tax results in the freelancer owing the full amount
• invoices lacking tax numbers are non-compliant
• providing services without registration while over the threshold justifies reassessment, penalties, and interest

Courts emphasize that freelancers must monitor revenue carefully.

ARE FREELANCERS REQUIRED TO CHARGE QST?

Here’s the clear breakdown.

1. YES, If you exceed $30,000 in taxable revenue

Once you pass the $30,000 threshold (in 4 quarters or 1 quarter):
• QST registration is mandatory
• GST registration is mandatory
• you must begin charging tax on your next invoice

2. YES, If your services are taxable

Most freelance services are taxable, including:
• consulting
• design
• IT and software development
• coaching
• photography/videography
• content creation
• translation
• audiovisual work
• HR training
• marketing
• advertising
• personal training (non-regulated)
• administrative services

Tax must be charged unless the activity is specifically exempt in the law.

3. NO, If your services are exempt

Only a few categories of freelancers provide exempt services, such as:
• certain regulated healthcare services
• certain educational/vocational programs under exemption rules
• certain financial services

If ALL your services are exempt:
• you do NOT charge QST/GST
• you cannot claim ITCs/ITRs
• you cannot register voluntarily for refund purposes

Most consultants and freelancers do NOT fall under exempt categories.

4. OPTIONAL — Voluntary registration (recommended in many cases)

Even if under $30,000, freelancers may voluntarily register to:
• claim input tax credits/refunds (ITCs/ITRs)
• look more professional to business clients
• avoid tracking the threshold too closely
• align with industry standards
• prepare for rapid growth

Voluntary registration is ideal for freelancers with business expenses.

ADVANTAGES OF CHARGING QST AS A FREELANCER

• Recover QST/GST on expenses (software, equipment, rent, subscriptions, marketing)
• Improve credibility with business clients
• Avoid crossing the threshold accidentally
• Maintain clean, audit-ready invoicing
• Keep pace with professional industry norms

WHAT HAPPENS IF YOU DON’T CHARGE QST WHEN YOU SHOULD?

Revenue Québec may require you to:
• register retroactively
• remit QST/GST out-of-pocket, even if clients refuse to repay it
• pay penalties
• pay interest going back multiple years
• fix past invoices and filings
• face a QST/GST audit

Freelancers are at high risk because they often invoice frequently and may grow revenue rapidly.

HOW FREELANCERS SHOULD CHARGE QST/GST

On each invoice, you must include:
• service description
• pre-tax amount
• GST at 5%
• QST at 9.975%
• GST registration number
• QST registration number
• invoice date and number

Accounting software (QuickBooks, Wave, Sage, FreshBooks) automates this.

COMMON FREELANCER MISTAKES

• assuming consulting is exempt
• waiting too long to register
• charging GST but forgetting QST
• not adding registration numbers to invoices
• treating personal expenses as business expenses
• failing to claim ITCs/ITRs for eligible purchases
• miscalculating the $30,000 threshold
• not separating business vs. hobby income

These issues trigger audits or retroactive assessments.

WHAT IF YOU WORK WITH CLIENTS OUTSIDE QUEBEC OR CANADA?

Freelancers must apply place-of-supply rules:

• Quebec clients → charge GST + QST
• Ontario/Atlantic clients → charge HST
• Western provinces → charge GST only
• U.S. or international clients → often zero-rated (0%), depending on service type

Correct tax coding is essential to avoid errors.

MACKISEN STRATEGY

Mackisen CPA helps freelancers and consultants:

• determine whether they must register
• register for GST/QST properly
• set up invoicing with compliant tax codes
• configure accounting systems (QuickBooks, Xero, Wave)
• track revenue thresholds
• calculate input tax credits and refunds
• correct late registration or past filing mistakes
• respond to Revenue Québec verification letters

Our structured compliance system protects freelancers from penalties and maximizes refunds.

REAL CLIENT EXPERIENCE

A Montreal consultant exceeded the threshold and owed two years of retroactive QST. Mackisen recalculated all periods and minimized penalties.

A freelance designer voluntarily registered early and recovered thousands in ITCs during startup.

A coach mistakenly assumed her services were exempt. Mackisen corrected her tax treatment and prevented reassessment.

COMMON QUESTIONS

Do all freelancers need QST numbers?
Not until they exceed $30,000 but voluntary registration is common.

What if I invoice only one client?
The rule still applies. Once you exceed $30,000, registration is mandatory.

Are coaching and consulting exempt?
No, they are taxable services.

Can I back-claim QST on old expenses after registering?
Some expenses may qualify; a CPA should review.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps freelancers understand their QST obligations, register correctly, and maintain full compliance. We protect you from costly mistakes and help you manage taxes professionally as your business grows.