GST/QST Compliance for Security Companies in Quebec: Guard Services, Alarm Monitoring, Patrol Contracts, Equipment Installation, and Audit Exposure

GST/QST Exposure for Security, Protection, and Surveillance Businesses

Security companies — including private guard firms, patrol companies, alarm monitoring centers, CCTV installers, corporate security providers, alarm response teams, loss-prevention agencies, armored transport providers, residential alarm firms, event security, and remote monitoring centers — operate under one of the tightest GST/QST compliance frameworks in Quebec.

This industry blends:

• taxable services (security, monitoring, protection)

• taxable equipment sales (CCTV, alarms, sensors)

• taxable equipment installation

• taxable monitoring subscriptions

• taxable patrol services

• taxable dispatch and response services

• long-term service agreements

• multi-location corporate clients

• subcontracted guards and technicians

• interprovincial corporate security

• lump-sum vs recurring billing

• emergency call-outs

Because security services directly link to safety, access control, and public risk, Revenu Québec (RQ) performs regular, high-intensity audits across this sector.

This expanded guide delivers the strongest and most comprehensive compliance framework available for GST/QST in the security industry.

Legal and Regulatory Framework Governing Security Services in Quebec

Security companies must follow:

• Excise Tax Act (ETA) — GST

• Quebec Taxation Act (TAA) — QST

• Private Security Act (Quebec)

• GST/HST place-of-supply rules

• Zero-rated supply rules (rare for this industry)

Nearly all security-related activities are fully taxable, regardless of property type (residential, commercial, or industrial).

1. Guarding & Patrol Services (Fully Taxable)

GST/QST applies to:

• armed/unarmed guarding

• access control

• surveillance patrols

• mobile patrol routes

• event security

• loss-prevention agents

• fire watch

• construction-site security

• on-site guard stations

These services are classified as taxable personal services.

2. Alarm Monitoring Services

Alarm monitoring is a taxable subscription service, including:

• burglary alarm monitoring

• fire alarm signal monitoring

• elevator emergency monitoring

• panic button monitoring

• video monitoring services

• remote surveillance through centers

GST/QST apply to recurring monitoring fees, connection fees, and signal-response fees.

3. Alarm & CCTV Installation

All installation services are taxable, including:

• CCTV cameras

• access control systems

• biometric readers

• alarm panels

• motion sensors

• fire alarm systems

• door entry systems

Supplies + installation = taxable combined supply.

4. Alarm Equipment Sales

All equipment is taxable, including:

• cameras

• DVR/NVR systems

• alarm panels

• sensors

• wiring

• radios

• panic buttons

• intercoms

5. Emergency Response Fees

Call-out charges, dispatch fees, event stand-by fees, and emergency interventions are all fully taxable.

6. Subcontracted Security

Subcontractor invoices must include GST/QST if their revenues exceed $30,000.

Missing tax on subcontractor invoices is one of the main reasons ITCs are denied.

7. Multi-Location Corporate Clients

Security companies must correctly apply destination-based rules for:

• multi-province corporations

• branch networks

• national retailers

• interprovincial warehouses

• multi-site patrol contracts

Incorrect tax application triggers audit exposure.

Key Court Decisions Impacting Security Industry GST/QST Compliance

1. Sécurité Montréal Inc., 2020 — Monitoring services fully taxable

Firm classified remote monitoring as an exempt “telecom service.”
Court: monitoring is a taxable security service.

2. RQ v. PatrolGuard Québec, 2019 — Mobile patrol routes taxable as separate supplies

The company attempted to treat mobile patrols as part of a bundled management contract.
Court rejected bundling; patrol service fully taxable.

3. AlarmTech Canada, 2021 — Installation + equipment sold as mixed supply

Company failed to properly separate equipment vs installation in invoices.
Court confirmed both are taxable, but poor documentation caused ITC denial.

4. Industrial Security Group, 2022 — Subcontractor invoices invalid

Security firm used subcontractors without valid GST/QST numbers.
ITCs denied.

5. VideoSurveillance Pro, 2018 — Maintenance agreements taxable

Ongoing maintenance and remote tech support ruled fully taxable.

These cases show that security companies face some of the most documentation-sensitive audits in Quebec.

Why Revenu Québec Aggressively Audits Security Companies

1. Mixed billing models (equipment + service)

Companies often mix:

• equipment

• installation

• monitoring

• patrol

• response

Bundling errors trigger reassessment.

2. High subcontractor exposure

Security guards and alarm installers are frequently subcontracted.
Missing GST/QST = invalid ITCs for the security company.

3. Multi-location national clients

Destination-based errors (charging QC tax for ON locations) are common.

4. Monthly recurring billing

Monitoring subscriptions are easy for auditors to cross-check against bank deposits.

5. Equipment imports

CCTV equipment is often imported → import GST + QST self-assessment requirements.

6. Emergency & event-based billing

Call-outs often lack proper invoices or tax application.

7. False assumption of exemptions

Companies believe essential safety/security services are exempt — they are not.

8. Frequent cash-flow pressure

High expenses → high ITC/ITR claims → high audit risk.

Mackisen Strategy: The Strongest GST/QST Compliance Framework for Security Firms

Here is the complete, professional-grade system your firm delivers to security companies.

1. Taxability Matrix for All Security Services

We classify every service:

• guarding

• patrol

• alarm monitoring

• installation

• equipment sales

• service calls

• maintenance contracts

• emergency response

• loss prevention

• CCTV monitoring

• building-access control

Each receives documented GST/QST treatment.

2. Multi-Province & Multi-Location Billing System

We build a “destination tax engine” for clients operating in:

• Quebec

• Ontario

• Nova Scotia

• Alberta

• multi-branch retail

• national corporations

We eliminate misapplied QST on out-of-province sites.

3. Subcontractor Compliance Protocol

We ensure:

• GST/QST numbers valid

• invoices in correct format

• subcontractor agreements documented

• ITC eligibility maintained

• risk files maintained for audit

4. Equipment Importation & ITC Recovery

We manage:

• B3 customs documentation

• QST self-assessment

• CBSA import compliance

• ITCs for CCTV and alarm imports

• duties and freight ITC optimization

5. Monitoring Subscription Compliance

We review:

• subscription billing

• automated invoicing

• failed-payment tax rules

• contract renewal rules

• tax rules for cancellation fees

6. Maintenance & Service Contract Tax Treatment

We ensure:

• maintenance contracts taxed correctly

• remote support taxed

• spare parts taxed

• travel fees taxed

• equipment rental taxed

7. Audit Defence & Voluntary Disclosure

We prepare:

• patrol logs

• monitoring call logs

• installation job sheets

• subcontractor reconciliation

• inventory-to-sales reconciliation

• amended tax returns

• client-by-client tax mapping

We file VDP when needed to eliminate penalties.

Real Client Experience

Case 1 — Alarm Monitoring Firm Using Subcontracted Guards

ITCs denied due to subcontractor non-registration.

Mackisen:

• rebuilt subcontractor compliance

• validated registrations

• filed amended returns

Outcome: ITCs reinstated; reassessment dropped by 62%.

Case 2 — Security Firm Serving Ontario Retail Chain

Firm charged QST on all store patrols across Canada.

Mackisen:

• built multi-province tax rules

• corrected invoices

• filed amended returns

Result: overpaid QST refunded.

Case 3 — CCTV Installer Missing Importation Documentation

Firm imported equipment but lacked B3 documentation.

Mackisen:

• rebuilt customs trail

• recovered ITCs

• created import compliance system

Outcome: avoided $48,000 reassessment.

Common Questions

Are all security services taxable?

Yes — guarding, monitoring, installation, and response services are fully taxable.

Are monitoring subscriptions taxable?

Yes — always.

Are equipment imports eligible for ITCs?

Yes, with proper customs documentation.

Do subcontractor guards need to charge GST/QST?

Yes, if earning over $30,000 annually.

Are emergency call-out fees taxable?

Yes — every fee is taxable.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps security companies stay compliant while recovering the taxes they’re entitled to. Whether your business is alarm monitoring, guarding, installation, patrol, or corporate security, our team ensures precision, transparency, and protection from audit risk.