Insights
Nov 12, 2025
Mackisen
Filing Zero-Sales GST/QST (TPS/TVQ) Returns Quebec — Why You Must File Even With No Revenue
Think you can skip your GST/QST (TPS/TVQ) return because your business had no sales this period? Think again. This guide by Mackisen CPA Montreal explains why even zero-sales businesses must file, what happens if you don’t, and how to stay fully compliant with Revenu Québec and CRA requirements.
Why Filing a Zero-Sales GST/QST (TPS/TVQ) Return Matters
Many new and small business owners in Quebec believe that if they didn’t make any sales during a reporting period, they don’t need to file their GST/QST (TPS/TVQ) return. This is a costly misconception.
Under the Excise Tax Act (R.S.C. 1985, c. E-15) and Tax Administration Act (CQLR c. A-6.002), every registered business must file a return for each reporting period, even if no tax was collected or paid. Failing to file a zero-sales (nil) return is treated exactly the same as failing to file any return — triggering automatic penalties, interest, and possible account suspension.
Revenu Québec uses automated systems that detect missing returns. Once flagged, your business account can be frozen, delaying future refunds or tax credits. Filing a nil return shows compliance and keeps your record in good standing.
Step 1 — Understand What “Zero-Sales” Really Means
A zero-sales (nil) GST/QST return applies when:
You made no taxable sales during the period.
You didn’t collect any GST/QST from customers.
You still incurred business expenses with GST/QST (e.g., rent, utilities, or software subscriptions).
Even without sales, those expenses may entitle you to Input Tax Credits (ITCs) and Input Tax Refunds (ITRs). Filing ensures you can claim those refunds instead of losing them.
Mackisen CPA Montreal ensures your nil filings still include credit claims where eligible — turning “no sales” into financial benefits.
Step 2 — Filing a Nil GST/QST (TPS/TVQ) Return Online
Filing a zero-sales return is quick and simple through:
CRA’s My Business Account (for GST/HST).
Revenu Québec’s Mon dossier pour les entreprises (for QST/TVQ).
You’ll enter zeros in all applicable fields except for expenses where you paid tax. The system will automatically calculate your refund or confirm that you owe nothing.
Once submitted, you’ll receive an on-screen confirmation number — keep this for six years. It’s proof that you met your filing obligations under both CRA and ARQ law.
If you’re unsure whether you qualify for credits or must file, Mackisen CPA Montreal reviews your accounts and handles electronic submissions to guarantee compliance.
Step 3 — Penalties for Not Filing Nil Returns
Revenu Québec and CRA impose identical penalties for missed filings — even if your balance is zero:
5% of the assessed balance due, plus 1% per month up to 12 months.
Automatic interest accrual.
Risk of account suspension or offset of future refunds.
A common mistake is assuming “no revenue” means “no return required.” But CRA and ARQ see non-filing as non-compliance. Once flagged, you may also face requests for supporting documentation, increasing your audit risk.
Mackisen CPA Montreal’s clients never miss nil deadlines — our filing system monitors periods and automatically submits returns to Revenu Québec and CRA portals.
Step 4 — Claiming Input Tax Credits (ITCs) and Refunds (ITRs) Even with No Sales
Even if your business didn’t earn revenue this quarter, you can still recover GST and QST you paid on eligible expenses such as:
Rent or coworking space.
Professional services (e.g., legal, accounting, design).
Software, tools, and subscriptions.
Marketing and startup expenses.
CRA and ARQ allow businesses to claim these through your nil return — effectively giving you a refund for taxes paid. Mackisen CPA Montreal ensures these credits are correctly documented and submitted, maximizing cash flow while staying compliant.
Step 5 — Keep Proof and Records for Six Years
Under Section 230 of the Income Tax Act and Section 94 of the Tax Administration Act, businesses must retain all GST/QST (TPS/TVQ) records for six years, including:
Nil return confirmations.
Receipts for business purchases.
Proof of payments and refunds.
Even if no tax was collected, Revenu Québec may request documentation to confirm that your zero-sales claim is legitimate. Mackisen CPA Montreal organizes and archives all records digitally for audit readiness and peace of mind.
Common Mistakes to Avoid
1. Not filing because there were “no transactions.”
Missing a nil return can suspend your account or delay future refunds. Always file, even with no revenue.
2. Forgetting to claim refundable credits.
You can still get money back through ITCs and ITRs — even on a nil filing.
3. Mixing personal and business expenses.
Only expenses directly related to your business are credit-eligible. Mackisen CPA reviews each line item for compliance.
4. Filing by mail.
Paper submissions delay processing and increase audit risk. Always file electronically through government portals.
Real Case Example — The Cost of Skipping a Nil Return
A small e-commerce startup in Montreal made no sales during its first quarter and skipped its GST/QST filing. Three months later, Revenu Québec assessed a $500 penalty and froze the company’s tax account, blocking future refunds. After hiring Mackisen CPA Montreal, the firm filed a correction, claimed $1,200 in input tax credits, and reinstated its compliance status.
The lesson? Even a zero-sales filing can protect your business — and save you money.
Mackisen CPA Montreal — Simplifying Compliance for Every Business
At Mackisen CPA Montreal, we ensure every client — from startups to established corporations — files GST/QST (TPS/TVQ) and HST returns Quebec on time, even during low or no-sales periods. Our bilingual CPA team manages all filings through CRA and Revenu Québec portals, ensures accuracy, and prevents penalties or delays.
We provide:
Automated electronic filing for nil and standard returns.
Review of refundable tax credits under CRA and ARQ laws.
Six-year digital record storage for audit protection.
Personalized CPA support and compliance monitoring.
Whether you earned $0 or $1,000,000, filing remains mandatory — and we make it effortless.
Key Takeaways for Quebec Businesses
File every GST/QST (TPS/TVQ) return, even when you have no sales.
Claim input tax credits and refunds on business expenses.
Always file electronically through Mon dossier or My Business Account.
Keep all receipts, invoices, and confirmations for six years.
Use a CPA firm like Mackisen CPA Montreal to ensure 100% compliance and avoid penalties.
Filing a zero-sales GST/QST (TPS/TVQ) return is a sign of responsibility — not inactivity. Mackisen CPA Montreal ensures your filings are precise, your refunds maximized, and your business protected from unnecessary audits.
