GST/QST REMITTANCE CHECKLIST: ENSURE YOUR PAYMENT IS CORRECT

Submitting your GST/QST return is only half of your sales tax obligation — the other half is making sure your payment is accurate, timely, and correctly applied to your account. Errors in remitting GST or QST can lead to penalties, interest, payment misallocations, refund delays, and even audit inquiries. Many businesses assume that once their return is filed, the payment will automatically be taken care of. But without a structured remittance checklist, mistakes happen. This guide explains exactly what to review before sending your GST/QST payment to Revenue Québec so you avoid unnecessary problems.

A disciplined remittance process protects your business’s cash flow, compliance, and audit readiness. Proper payment practices also improve your relationship with Revenue Québec by ensuring your file remains clean and up to date.

LEGAL AND REGULATORY FRAMEWORK

Payment obligations are governed by the Excise Tax Act (GST) and the Quebec Taxation Act (QST). Businesses must remit GST and QST by their assigned filing deadlines — monthly, quarterly, or annually. Penalties and daily interest apply to late payments, even if the return was filed on time. Revenue Québec may also reallocate payments if the business makes errors entering reference numbers or periods.

Proper remittance ensures your payment is recognized as legally valid and prevents outstanding balances from accumulating on your account.

KEY COURT DECISIONS

Courts in Quebec and Canada consistently uphold GST/QST penalties when businesses remit payments late or incorrectly. In several cases, taxpayers argued that late payments were caused by bank delays, accounting errors, or misunderstanding of deadlines. Judges upheld penalties, confirming that the responsibility rests on the business.

Courts have also upheld assessments where businesses paid GST/QST to the wrong period or remitted partial amounts. These rulings highlight the need for precise and timely remittance procedures.

WHY CRA AND REVENU QUÉBEC TARGET REMITTANCE ERRORS

Payment errors are common indicators of deeper compliance problems. Red flags include:
• repeated late payments
• outstanding balances that accumulate over time
• payments applied to the wrong period
• incorrect remittance amounts
• sudden changes in tax payable
• refunds claimed without sufficient documentation

Businesses with inconsistent payment histories often experience more frequent verification notices or account reviews.

GST/QST REMITTANCE CHECKLIST: ENSURE YOUR PAYMENT IS CORRECT

Use this checklist each time you remit your tax payment.

1. Confirm your filing frequency and due date
   Check your assigned frequency (monthly, quarterly, or annual) and verify the exact payment due date in Mon Dossier. Deadlines vary depending on your period end.

2. Verify your net tax owing
   Double-check the calculation of:
   • GST collected
   • QST collected
   • eligible input tax credits and refunds
   • adjustments and credit notes
   Ensure the net balance matches your FPZ-500-V return.

3. Confirm the correct reporting period
   Incorrect period entries are one of the most common remittance errors. Ensure your payment references the exact filing period being paid.

4. Check your banking details
   Verify your bank account number, institution number, and transit number before submitting your payment. Incorrect details can cause payment failure.

5. Use the correct payment method
   Options include:
   • online banking (preferred)
   • payment through Mon Dossier
   • pre-authorized debit
   • wire transfer (for large amounts)
   Avoid sending cheques unless necessary they slow down processing.

6. Confirm sufficient funds
   Ensure the account used for payment has enough available funds. Many businesses receive NSF penalties because funds were allocated elsewhere.

7. Keep a payment confirmation
   Save proof of payment, including:
   • payment confirmation number
   • date and time
   • amount remitted
   • screenshot or PDF of your transaction

Store this in your GST/QST filing folder for the period.

8. Reconcile payment with your accounting system
   After payment is made, update your accounting software to reflect the remittance. Ensure your GST/QST liability accounts match the amount paid.

9. Check your Mon Dossier account after 48–72 hours
   Verify that Revenue Québec received and applied the payment to the correct period. Misallocations occur frequently when reference numbers are entered incorrectly.

10. Address discrepancies immediately
    If your account shows an unexpected balance after payment, contact Revenue Québec or ask your CPA to reallocate the payment promptly.

11. Maintain a rolling remittance calendar
    Monitor future deadlines and amounts to prevent last-minute financial stress or insufficient funds.

12. Review recurring issues and correct system weaknesses
    If you frequently remit late or experience mismatches, review your internal processes, onboarding procedures, and accounting system setup.

MACKISEN STRATEGY

Mackisen CPA assists businesses in managing GST/QST payments accurately and on time. We verify your filing amounts, help schedule payment reminders, confirm proper application of remittances, and correct misallocated payments. Our team reconciles your accounts, identifies recurring issues, and creates automated systems that prevent remittance errors.

For businesses with outstanding balances or penalties, Mackisen negotiates with Revenue Québec, prepares repayment plans, and handles account corrections.

REAL CLIENT EXPERIENCE

A Montreal contractor frequently saw outstanding balances despite making payments. The issue was misapplied reference numbers. Mackisen resolved the misallocations, fixed the account, and prevented future issues.

A retailer experienced NSF charges due to fluctuating cash flow. Mackisen implemented a tax reserve account and payment schedule that eliminated late or failed payments.

A consulting firm had a refund held because previous periods showed unpaid balances. Mackisen reconciled tax accounts, corrected remittances, and released the refund.

COMMON QUESTIONS

What if I filed on time but paid late
Penalties and interest still apply. Payment deadlines are mandatory.

Can I correct a payment made to the wrong period
Yes. A CPA can request a payment reallocation from Revenue Québec.

What if I overpaid
Overpayments can be applied to future periods or refunded, depending on the situation.

Do I need proof of payment
Yes. Proof is essential during audits, reviews, or remittance disputes.

Can I automate GST/QST payments
Yes. Pre-authorized debit and banking tools can automate remittances, but monitoring is still required.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses avoid remittance errors and maintain clean, compliant GST/QST accounts. Our structured systems, monitoring tools, and professional oversight ensure every payment is accurate and timely.