DO I NEED TO REGISTER FOR GST/QST?

Many new Quebec entrepreneurs, freelancers, consultants, and small business owners struggle with one critical question: Do I need to register for GST and QST? Understanding when registration becomes mandatory — and when voluntary registration is beneficial — is essential to avoid penalties, missed tax credits, and compliance problems. This guide answers the most common GST/QST registration questions, giving you clear, practical guidance based on Quebec and federal tax rules.

Knowing the right time to register protects your business, ensures professional invoicing, and prevents costly retroactive obligations.

LEGAL AND REGULATORY FRAMEWORK

GST registration is governed by the Excise Tax Act, and QST registration is governed by the Quebec Taxation Act. Under these laws, a business must register for GST and QST when:

• its worldwide taxable revenues exceed $30,000 over the last four consecutive quarters
• or it exceeds $30,000 in a single quarter

This rule applies to:
• sole proprietors
• partnerships
• corporations
• online businesses
• consultants
• contractors
• any entity making taxable supplies

Businesses below this threshold are considered small suppliers and are not required to register — but may choose to do so voluntarily.

KEY COURT DECISIONS

Courts consistently uphold the strict application of the GST/QST registration threshold. Key rulings confirm:

• ignorance of the $30,000 rule does not excuse late registration
• businesses exceeding the threshold must remit tax retroactively, even if they did not charge clients
• voluntary registration is valid and allows ITC/ITR claims
• late registrants cannot retroactively fix non-compliant invoices without customer consent

These decisions reinforce why timely registration is essential.

WHY REVENU QUÉBEC REVIEW REGISTRATION STATUS

Registration issues are a common trigger for audits and verification because businesses often:

• exceed the threshold without realizing it
• fail to register despite taxable activity
• issue invoices without tax numbers
• file late or incomplete first returns
• attempt to claim input tax credits without registration
• misinterpret whether their service is taxable

Revenu Québec monitors new businesses, consultants, freelancers, e-commerce sellers, and contractors closely.

DO I NEED TO REGISTER FOR GST/QST? COMMON QUESTIONS ANSWERED

Below are the most frequently asked questions — with clear answers.

1. I earned less than $30,000. Do I need to register?

No not legally. You are considered a small supplier.
However, voluntary registration may still benefit you if you:
• have business clients
• incur expenses with GST/QST
• want to claim input tax credits
• expect to grow quickly

2. What happens when I cross $30,000?

Registration becomes mandatory immediately, and you must start charging GST/QST on your next invoice.

3. What if I passed $30,000 months ago and didn’t notice?

You must:
• register retroactively, and
• remit GST/QST for the period even if you didn’t charge clients

Mackisen can help minimize penalties or apply voluntary disclosure.

4. Do freelancers need to register?

Yes — if they exceed $30,000.
Many freelancers benefit from voluntary registration for ITCs/ITRs.

5. Do online sellers (e-commerce) need to register?

Yes — if they sell taxable goods/services to Quebec customers and exceed the threshold.
Non-resident sellers may also be required to register.

6. Do I need to register if I only sell services?

If the service is taxable (most are), then yes, based on the $30,000 threshold.

7. What services are exempt?

Common exempt services include:
• certain health services
• certain financial services
• educational services by certified institutions

If your service is exempt, you do not charge GST/QST — but you also cannot claim input credits.

8. Should startups register voluntarily?

Often yes. Voluntary registration allows:
• input tax credits on early expenses
• compliant invoicing
• better cash flow management
• fewer administrative surprises later

9. How long does registration take?

Online registrations through Revenu Québec are usually processed within a few days.
More complex cases may take longer.

10. Can I charge GST/QST before receiving my numbers?

No. This is a serious compliance error.

11. What if I only have one big client?

If your revenues exceed $30,000, you must register — even if it’s from a single client.

12. How do I know if my activity is “taxable”?

Most business activities are taxable unless explicitly exempt.
If unsure, consult a CPA.

MACKISEN STRATEGY

Mackisen CPA helps entrepreneurs, startups, and freelancers determine whether GST/QST registration is required or beneficial. We analyze revenue projections, evaluate the taxable nature of your operations, and complete your registration with Revenu Québec. We also:

• configure invoicing templates
• set up tax codes in your accounting software
• create compliance calendars
• ensure documents are audit-ready
• help request voluntary disclosure if registration is late

Our proactive approach ensures clean compliance from day one.

REAL CLIENT EXPERIENCE

A Montreal designer accidentally crossed $30,000 and continued invoicing without tax. Mackisen corrected the registration and prepared back filings, minimizing penalties.

An e-commerce startup voluntarily registered early and recovered thousands in input tax credits during its launch phase.

A wellness practitioner believed her services were exempt. Mackisen determined they were taxable, registered her business, and fixed past invoices before an audit occurred.

COMMON QUESTIONS

What happens if I delay registration?
You may owe GST/QST retroactively and face penalties.

Is voluntary registration risky?
No it often provides financial advantages.

Can I de-register later?
Yes, if your revenues drop permanently below the threshold.

Do small suppliers get audited?
Yes especially if filings are inconsistent or refunds are claimed.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses understand and meet GST/QST registration requirements. Our precise, structured approach protects you from penalties, ensures correct invoicing, and secures your eligibility for input tax credits.