GST/QST Payment Bounced (NSF)? How to Fix a Returned Tax Payment Before It Gets Serious

A bounced GST/QST payment also known as an NSF payment (Non-Sufficient Funds) is more common than most business owners realize. It can happen because of cash-flow timing, bank transfer delays, an overlooked withdrawal, or unexpected expenses.
But when the payment is going to Revenu Québec, the consequences are more serious than a regular NSF fee.

The good news: with fast, strategic action, you can fix the issue before penalties escalate or before Revenu Québec flags your account for collections.

Here is exactly what to do.

Step 1 — Don’t Panic, but Act Fast

An NSF payment is not the end of the world, but timing matters.
Revenu Québec receives automatic notices from your bank when:
• a pre-authorized debit fails
• an online banking payment bounces
• a cheque is returned

The faster you correct it, the lower your risk of:
• penalties
• interest accumulation
• refund freezes
• compliance reviews

Step 2 — Check Why the Payment Failed

Identify the cause:
• insufficient funds
• wrong bank account used
• daily transfer limits exceeded
• technical error in online banking
• payment scheduled on a non-business day
• pre-authorized debit triggered before funds arrived

Fixing the root cause prevents future NSF issues.

Step 3 — Make the Payment Again Immediately

Option A — Online banking (fastest)
Re-submit the GST/QST payment through your online banking platform using your correct remittance reference number.

Option B — Pre-authorized debit
If the original PAD failed, schedule a new one (after ensuring funds are available).

Option C — In-branch payment
If there’s urgency or banking limits, pay in person at your bank.

Option D — Certified cheque or money order
Use only if online methods fail.

The key: Do not wait for another notice before paying.

Step 4 — Pay the NSF Penalty (If Applicable)

Revenu Québec typically charges:
• an NSF penalty
• interest from the original payment due date

These amounts are usually small, and paying them promptly keeps your account clean.

Step 5 — Check Your Revenu Québec Account for Flags

Log into Mon Dossier to verify:
• payment status
• outstanding balance
• penalty or interest added
• whether your refunds are frozen
• whether a “collections review” flag was applied

If there is a balance remaining, pay it immediately to avoid escalation.

Step 6 — Avoid Triggering a Compliance Review

Multiple NSF events send a strong signal to Revenu Québec that the business may be non-compliant or at financial risk.

This can lead to:
• refund suspensions
• verification letters
• audit selection
• accelerated collection measures

A CPA can intervene early to avoid these outcomes.

Step 7 — Fix Cash-Flow Systems to Prevent Future NSF Issues

Most NSF problems are not tax issues they are cash-flow issues.

Mackisen helps businesses:
• forecast upcoming GST/QST balances
• create monthly tax-reserve accounts
• adjust billing practices
• negotiate supplier payments
• implement cloud-based cash-flow tools

With proper planning, you’ll always have tax money set aside.

Real Client Examples

A consultant’s PAD failed due to a weekend deposit delay. Mackisen re-submitted payment same day and prevented penalties.

A restaurant bounced two payments because of fluctuating daily deposits. We set up a tax-reserve account no issues since.

A contractor’s online banking limit caused an NSF error. Mackisen arranged an in-branch payment and prevented collection action.

Common Questions

Will one NSF trigger an audit?
No but repeated NSF payments increase audit risk.

Will Revenu Québec forgive the NSF penalty?
Rarely it usually must be paid.

Will they freeze my refunds?
Possibly, until the account is brought up to date.

If I pay immediately, will it show as late?
Interest applies, but prompt correction avoids further consequences.

Is it better to pay partial or full?
Full payment is best, but partial is better than doing nothing.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses correct NSF GST/QST payments, prevent penalties, negotiate payment arrangements, and build reliable systems that avoid financial stress and tax-related surprises.