FREELANCER’S CHECKLIST: FILING GST/QST RETURNS WITH EASE

Freelancers and self-employed professionals in Quebec — including consultants, designers, IT specialists, writers, coaches, tradespeople, therapists, and creatives — often struggle with GST/QST compliance because they juggle client work, billing, financial admin, and marketing alone. Filing GST/QST should be simple, but missing receipts, inconsistent invoicing, or misunderstanding tax rules can lead to costly errors or audit exposure. This freelancer-specific checklist shows you exactly how to file your GST/QST returns with confidence, accuracy, and ease.

A structured filing process gives freelancers control over their finances, protects them from penalties, and ensures they receive all eligible input tax credits.

LEGAL AND REGULATORY FRAMEWORK

Freelancers must comply with the Excise Tax Act (GST) and the Quebec Taxation Act (QST). Sales tax registration becomes mandatory when total taxable revenues exceed thirty thousand dollars over four consecutive quarters. Voluntary registration is often beneficial because it allows recovery of input tax credits on business expenses.

Once registered, freelancers must:
• charge GST and QST on invoices
• include tax numbers on all billing documents
• file returns by monthly, quarterly, or annual deadlines
• remit tax collected
• maintain compliant documentation for six years

KEY COURT DECISIONS

Courts have repeatedly upheld the responsibility of freelancers to maintain complete and accurate GST/QST records. Key findings include:
• input tax credits denied where receipts were missing or incomplete
• invoices without GST/QST registration numbers deemed non-compliant
• incorrect classification of taxable vs. exempt services leading to reassessments
• failure to track deposits or progress payments resulting in underreported taxes

Judges consistently emphasize that being “small” or “independent” does not excuse non-compliance.

WHY REVENU QUÉBEC OFTEN REVIEWS FREELANCERS

Freelancers frequently make errors that attract attention:
• mixing business and personal expenses
• late GST/QST registration
• inconsistent invoicing
• incorrect tax rates
• missing documentation
• refund claims that appear disproportionate to revenue

Industries commonly reviewed include consulting, wellness services, trades, IT, design, tutoring, and coaching.

FREELANCER’S CHECKLIST: FILING GST/QST RETURNS WITH EASE

Follow this checklist every filing period to stay fully compliant.

1. Confirm your registration status
   If your income exceeds $30,000, you must register. If not registered yet, consider voluntary registration for input tax credits.

2. Use compliant invoicing
   Your invoices must include:
   • your GST and QST registration numbers
   • date and invoice number
   • client details
   • service descriptions
   • tax amounts shown separately
   This ensures your clients can claim their credits and your invoices pass audits.

3. Track all sales monthly
   Record all sales in your accounting system, including:
   • hourly or project invoices
   • deposits
   • recurring services
   Separate taxable vs. exempt services (rare, but possible).

4. Track all expenses with proper receipts
   To claim ITCs/ITRs, receipts must show:
   • supplier name and GST/QST numbers
   • invoice date
   • tax breakdown
   • business purpose
   Digital receipts are acceptable.

5. Separate business from personal expenses
   Use a dedicated bank account and credit card. Only business-related expenses should be claimed.

6. Reconcile GST/QST collected
   Run a monthly report to confirm the amount of GST/QST invoiced and collected. Fix any missing tax coding.

7. Reconcile GST/QST expenses
   List all eligible GST/QST paid on expenses and compare with receipts. Fix errors before filing.

8. Review recurring subscription and software expenses
   Freelancers often forget to claim GST/HST on tools and online platforms. Download monthly receipts.

9. Reconcile bank deposits to sales
   Ensure deposits match invoices. Explain deposits that are not income (loans, transfers, reimbursements).

10. Fill out the FPZ-500-V return
    Enter:
    • total taxable sales
    • GST collected
    • QST collected
    • eligible input tax credits
    • adjustments
    • net tax payable or refundable

11. Save a copy of the filed return
    Store the PDF confirmation and attach your sales and expense summaries. This becomes your audit-ready file.

12. Make payment or monitor refund
    If you owe tax, pay immediately. If expecting a refund, monitor your Mon Dossier account in case Revenue Québec requests documentation.

13. Maintain monthly bookkeeping
    Freelancers who wait until filing deadlines to organize receipts face more errors and missed credits.

MACKISEN STRATEGY

Mackisen CPA helps freelancers set up clean, simple GST/QST systems tailored to their workflow. We configure invoicing templates, automate bookkeeping, create receipt-capture processes, and handle GST/QST filings. For freelancers who fall behind, we perform cleanup, reconcile months of records, and prepare amended returns when necessary.

We also offer guidance on pricing, cash flow, refunds, and system shortcuts that simplify tax compliance.

REAL CLIENT EXPERIENCE

A freelance designer overcharged QST due to incorrect invoicing software settings. Mackisen corrected the issue, updated templates, and filed adjustments.

A self-employed IT consultant missed hundreds in ITCs due to missing receipts. Mackisen set up digital receipt storage and improved their routine.

A fitness coach combined personal and business purchases. Mackisen reorganized their expenses and prevented ITC denial during a review.

COMMON QUESTIONS

Do freelancers always need to charge GST/QST
Only if revenue exceeds $30,000 or if voluntary registration is chosen.

Can freelancers claim GST/QST on home office expenses
Yes, but only the business-use portion.

Is bookkeeping software required
Highly recommended. Manual spreadsheets lead to errors and missed credits.

What if I forgot to charge GST/QST
You may need to issue a corrected invoice or absorb the tax yourself.

Can freelancers be audited
Yes. Freelancers are audited frequently due to documentation gaps.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps freelancers file GST/QST returns accurately and stress-free. Our structured checklists, accounting systems, and ongoing guidance ensure full compliance for self-employed professionals.