GST/QST REGISTRATION CHECKLIST: STEPS TO GET YOUR TAX NUMBERS

Registering for GST and QST is one of the most important steps a new business must complete. Without valid sales tax numbers, you cannot legally charge taxes, claim input tax credits, or issue compliant invoices. Many entrepreneurs delay registration, misunderstand the $30,000 threshold, or struggle with Revenue Québec forms — resulting in missed credits, incorrect invoices, or penalties. This GST/QST registration checklist provides a clear, structured process to help you register correctly and avoid costly administrative mistakes.

Whether you're launching a startup, becoming self-employed, or expanding your business into Quebec, following this checklist ensures you obtain your tax numbers quickly and compliantly.

LEGAL AND REGULATORY FRAMEWORK

GST registration is governed by the Excise Tax Act, while QST registration is governed by the Quebec Taxation Act. Businesses must register when their worldwide taxable revenues exceed thirty thousand dollars in a single calendar quarter or over the last four consecutive quarters. Registration may also be required earlier if you carry on business in Quebec, provide taxable supplies, or operate as a non-resident seller.

Voluntary registration is permitted at any time, and many businesses choose it to claim input tax credits and present professional invoices. Revenue Québec administers both GST and QST in Quebec, issuing combined tax numbers used on all invoices and returns.

KEY COURT DECISIONS

Courts across Canada consistently uphold the requirement to register once the threshold is exceeded. In several rulings, businesses argued they were unaware of the threshold or believed their activities were exempt. Judges ruled that misunderstandings do not excuse late registration and upheld retroactive assessments and penalties.

Courts also confirmed that businesses cannot retroactively charge tax to customers once services have already been provided without proper registration. Businesses ended up paying GST/QST out-of-pocket because they issued invoices before obtaining valid registration numbers.

These decisions underscore the importance of timely, accurate registration.

WHY CRA AND REVENU QUÉBEC TARGET REGISTRATION ERRORS

Registration errors often lead to:
• under-collected GST/QST
• unsupported refunds
• missing input tax credits
• incorrect invoices
• mismatched returns
• late filings
• non-compliance reviews

Businesses that fail to register on time or register incorrectly often trigger audits. Industries with frequent early-stage confusion — consulting, construction, wellness, e-commerce, and digital services — are especially at risk.

GST/QST REGISTRATION CHECKLIST: STEPS TO GET YOUR TAX NUMBERS

1. Determine whether registration is mandatory or voluntary
   Mandatory registration occurs when:
   • taxable revenues exceed $30,000 over four consecutive quarters
   • taxable revenues exceed $30,000 in a single quarter
   Voluntary registration is recommended if:
   • you incur GST/QST on startup expenses
   • you sell to business clients
   • you expect rapid growth
   • you want to claim input tax credits immediately

2. Gather essential business information
   Before registering, ensure you have:
   • legal business name
   • NEQ (if incorporated or registered in Quebec)
   • business address and contact information
   • federal business number (BN)
   • ownership details (shareholders or proprietors)
   • business activity description
   • projected annual revenue

3. Register through Revenue Québec
   You can register online, by phone, or by mail. Registration creates:
   • a GST account
   • a QST account
   Both numbers will appear in the format required for invoicing and filing. Once approved, you will receive confirmation from Revenue Québec.

4. Review your filing frequency
   Revenue Québec assigns monthly, quarterly, or annual filing frequencies based on expected revenue. Review your assigned frequency and adjust if beneficial. Quarterly filing is common for new businesses.

5. Update your invoicing system immediately
   Once you have tax numbers:
   • add GST/QST to all invoices
   • update invoice templates
   • include your tax numbers clearly
   • ensure proper tax calculations
   Issuing invoices without tax numbers after registration is non-compliant.

6. Configure your accounting software
   Update your bookkeeping system to:
   • activate GST/QST tax codes
   • separate taxable vs exempt revenue
   • track GST/QST collected vs paid
   • prepare automated tax reports
   Proper setup reduces filing errors.

7. Understand input tax credit rules
   Once registered, you may recover GST/QST on eligible business expenses. Ensure you:
   • keep proper invoices
   • verify supplier tax numbers
   • separate personal and business expenses
   • track recurring subscriptions and supplier charges
   Missed ITCs mean lost money.

8. Set up a compliance calendar
   Mark key deadlines in your calendar:
   • filing due dates
   • remittance deadlines
   • monthly or quarterly reconciliations
   Late filings create penalties and interest.

9. Prepare for a potential verification
   New registrants with refund claims or unusual activity may receive a review request. Prepare by maintaining a complete audit-ready documentation file.

10. Consult a CPA if unsure
    Improper registration can lead to months of corrections. A CPA ensures compliance, correct setup, and timely registration.

MACKISEN STRATEGY

Mackisen CPA helps businesses register quickly and correctly for GST and QST. We gather required information, complete registration forms, configure accounting software, and set up invoicing systems that meet all Quebec legal standards. Our team ensures you understand your filing frequency, your remittance obligations, and best practices for claiming input tax credits.

We also conduct early compliance checks to confirm your business is correctly charging, collecting, and reporting GST/QST immediately after registration.

REAL CLIENT EXPERIENCE

A Montreal fitness consultant exceeded the $30,000 threshold and failed to register on time. Mackisen corrected the mistake, registered the business, and filed adjusted returns to reduce penalties.

An e-commerce startup registered voluntarily but misconfigured their online tax settings. Mackisen corrected their Shopify tax codes and avoided incorrect invoicing.

A contractor attempted to retroactively charge GST/QST after completing work. Mackisen negotiated with Revenue Québec to minimize adjustments and resolved compliance issues.

COMMON QUESTIONS

Do I need an NEQ to register
Not if you are a sole proprietor but incorporated and partnership businesses require an NEQ.

How long does registration take
Online registrations are often approved within a few days, though complex cases may require longer.

Can I charge GST/QST before receiving my numbers
No. Doing so is non-compliant and leads to major administrative issues.

What if I expect slow growth
Voluntary registration still allows ITC recovery and avoids tracking the $30,000 threshold closely.

Should I set up a separate account for tax remittances
Yes. Keeping GST/QST funds separate prevents cash flow issues.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses register for GST and QST efficiently and accurately. We ensure your accounts, invoices, and software are set up correctly from day one — protecting you from errors and penalties.