GST/QST REFUND CLAIM CHECKLIST: ENSURE YOU GET YOUR MONEY BACK

Many Quebec businesses file GST/QST returns expecting refunds, especially startups, contractors, retailers with high inventory costs, and service providers who incur significant expenses early in their operations. However, Revenu Québec often delays or denies refunds due to missing documentation, inconsistent filings, or inaccurate GST/QST calculations. This checklist helps ensure your refund request is complete, compliant, and fully supported — improving your chances of receiving your money quickly and without complications.

A structured refund claim process not only speeds up payments but also reduces the likelihood of verification requests and full audits.

LEGAL AND REGULATORY FRAMEWORK

Refund eligibility is governed by:
• the Excise Tax Act (GST)
• the Quebec Taxation Act (QST)

A refund is issued when input tax credits (ITCs) and input tax refunds (ITRs) exceed GST/QST collected. To claim a refund, businesses must:
• file an accurate FPZ-500-V return
• support all ITCs/ITRs with compliant invoices
• maintain documentation for at least six years
• respond to any verification letters from Revenu Québec

Refunds may be held until supporting documentation is provided.

KEY COURT DECISIONS

Courts have repeatedly upheld Revenu Québec’s authority to withhold refunds when documentation is incomplete or inconsistent. Judges have ruled that:
• taxpayers must provide evidence for every ITC/ITR claimed
• bank statements alone cannot justify credits
• missing supplier tax numbers invalidate claims
• refunds can be refused if sales totals do not match banking activity
• late or amended filings may trigger verification

These decisions emphasize the importance of precise documentation and proper reconciliation when claiming refunds.

WHY REVENU QUÉBEC FREQUENTLY VERIFIES REFUNDS

Refund claims trigger scrutiny because they may indicate:
• high business expenses relative to revenue
• startup activity
• construction or renovation activity
• large capital purchases
• missing documentation
• inconsistent filings
• previous compliance issues

A clean, organized refund claim helps avoid delays.

GST/QST REFUND CLAIM CHECKLIST: ENSURE YOU GET YOUR MONEY BACK

Use this checklist before filing any refund-related GST/QST return.

1. Confirm refund eligibility

Calculate your totals:
• GST/QST collected
• eligible input tax credits/input tax refunds
• adjustments
If ITCs/ITRs exceed GST/QST collected, you qualify for a refund.

2. Collect all supplier invoices

Ensure each invoice includes:
• supplier legal name
• GST/QST registration numbers
• invoice date and number
• item descriptions
• tax amounts
• proof of payment (when required)
Missing or incomplete invoices are the #1 cause of refund delays.

3. Organize invoices by period

Separate invoices by tax period to match your FPZ-500-V filing. Refund verification depends on accurate period allocation.

4. Reconcile GST/QST control accounts

Ensure your general ledger matches:
• GST collected
• QST collected
• GST paid (ITCs)
• QST paid (ITRs)
Discrepancies require correction before filing.

5. Confirm taxable vs. exempt purchases

Only expenses used to make taxable or zero-rated supplies qualify for ITCs/ITRs. Exempt activities do not.

6. Identify capital asset purchases

Large purchases (equipment, computers, vehicles, machinery) must be documented with full invoices showing tax amounts.

7. Review recurring expenses

Ensure items like:
• software subscriptions
• advertising
• rent
• utilities
• telecom services
• payment processor fees
include GST/HST or QST when applicable and are included in your ITC/ITR calculation.

8. Confirm correct tax coding

Double-check that your accounting system correctly coded each purchase as taxable, exempt, or zero-rated.

9. Reconcile sales totals

Verify that:
• taxable sales
• exempt sales
• zero-rated sales
match POS and bank records. Refund requests often trigger comparisons between revenue and deposits.

10. Prepare for verification

Even legitimate refunds may be subject to review. Prepare:
• copies of invoices
• sales reports
• bank statements
• reconciliations
• contracts
• digital receipts

11. File an accurate FPZ-500-V return

Ensure all lines are completed correctly and include supporting adjustments. Mistakes can delay your refund.

12. Save proof of filing

Download and store:
• filing confirmation
• PDF of the return
• tax calculations
• reconciliation reports

13. Monitor your refund status in Mon Dossier

Check for:
• refund release
• review requests
• notices of assessment
Respond quickly to any documentation requests.

14. Respond to verification letters promptly

Revenu Québec often requests:
• invoices
• contracts
• bank proof
• additional clarifications
Delays in responding prolong refund processing.

MACKISEN STRATEGY

Mackisen CPA helps businesses prepare complete, audit-ready refund claims. We review supporting documentation, reconcile tax accounts, and ensure all GST/QST credits are valid and properly documented. When Revenu Québec issues verification requests, we prepare response packages, communicate with auditors, and resolve discrepancies efficiently.

Our approach helps businesses receive refunds faster, avoid unnecessary adjustments, and maintain strong compliance records.

REAL CLIENT EXPERIENCE

A Montreal contractor waited months for a refund due to missing receipts. Mackisen contacted suppliers, rebuilt documentation, and secured approval.

An e-commerce seller triggered verification because revenue and deposits didn’t match. Mackisen reconstructed reconciliations and obtained the refund.

A startup had incomplete ITC documentation from numerous digital subscriptions. Mackisen built a digital archive and resolved the review.

COMMON QUESTIONS

Why was my refund delayed
Revenue Québec often waits to review supporting documentation before releasing refunds.

Can I claim GST/QST back without invoices
No. Proper documentation is required by law.

How long do refunds take
Typically 2–6 weeks, longer if verification is required.

Do large refunds trigger audits
Large or unusual refunds often lead to verification requests.

Can a CPA speed up refund processing
Yes. Proper documentation and accurate filing reduce delays significantly.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses prepare clean, documented, and compliant GST/QST refund claims. Our structured approach protects your refunds and reduces review time.