How to Apply for a GST/HST Number and QST Number Together

Introduction
Starting a new business in Quebec means understanding one of the most essential compliance steps: registering for your GST/HST and QST numbers. These numbers authorize you to collect and remit taxes to both the Canada Revenue Agency (CRA) and Revenu Québec (ARQ)—and they’re legally required once your annual taxable revenues exceed $30,000.

Many entrepreneurs mistakenly register for one tax but forget the other, or delay registration until after surpassing the threshold. This can trigger penalties, backdated assessments, and unnecessary interest charges. The good news? You can register for both GST/HST and QST simultaneously, saving time and ensuring your business stays compliant from day one.

At Mackisen CPA Montreal, our CPA auditors and tax lawyers have helped thousands of Quebec businesses register correctly with both agencies. This comprehensive guide walks you step-by-step through the process, the laws that govern it, and how to avoid the most common registration pitfalls.

Legal and Regulatory Framework
Registration for GST/HST and QST is mandated by:

• Excise Tax Act (Canada) s.240(1) — requires businesses making taxable supplies exceeding $30,000 in annual revenue to register for GST/HST.

• Taxation Act (Quebec) s.407 — mandates QST registration for all businesses carrying on commercial activities in Quebec.

• Tax Administration Act (Quebec) s.93 — authorizes Revenu Québec to reassess businesses that fail to register or collect taxes.

• Tax Administration Act s.94.1 — allows businesses to request relief for penalties if registration delays were unintentional and corrected voluntarily.

Failing to register on time can lead to backdated QST/GST assessments and compounded daily interest under Excise Tax Act s.280(1) and Tax Administration Act s.59(3).

When You Must Register
You are required to register for both GST/HST and QST if:

• Your worldwide taxable revenues exceed $30,000 in any four consecutive calendar quarters.

• You are a consultant, retailer, e-commerce seller, or professional earning revenue in Quebec.

• You operate a business that provides taxable goods or services to Quebec residents.

Even if you earn less than $30,000, voluntary registration is often beneficial because it allows you to claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) for GST/QST paid on business expenses.

Step-by-Step: How to Apply for a GST/HST Number and QST Number Together

1. Gather Business Information
   Before registering, prepare:

   • Legal business name and structure (sole proprietorship, corporation, partnership).

   • Quebec Enterprise Number (NEQ) from the Registraire des entreprises.

   • Business address and contact information.

   • Description of commercial activities.

   • Projected annual revenue and fiscal year-end.

   • Preferred reporting frequency (monthly, quarterly, or annually).

2. Register for GST/HST (CRA)

   • Visit CRA Business Registration Online.

   • Create an account or sign in with your CRA credentials.

   • Register for the GST/HST program account, which will be added to your Business Number (BN).

   • Your GST/HST account number will look like this: 123456789RT0001.

3. Register for QST (Revenu Québec)

   • Go to revenuquebec.ca.

   • Log in or create your Mon Dossier account.

   • Select “Register for QST.”

   • Your QST number will look like this: TQ1234567890.

   Note: If you’re a Quebec-based business, Revenu Québec will automatically share your GST registration details with CRA—allowing you to register for both taxes in a single session.

4. Confirm Activation and Effective Dates
   CRA and Revenu Québec will confirm registration by mail or online message. Verify that the effective date matches when you first exceeded $30,000 in sales or began commercial activity.

5. Update Your Invoices and Accounting System
   Add your new GST/HST and QST numbers to all invoices and configure your accounting software to apply 5% GST and 9.975% QST (14.975% total).

Jurisprudence and Legal Insights
Courts have reinforced the obligation to register and collect taxes promptly:

• Lac d’Amiante du Québec Ltée (SCC 2001) — confirmed Revenu Québec’s power to demand registration and audit records retroactively.

• Canderel Ltd. v. Canada (SCC 1998) — stated that tax filings must reflect commercial reality, not intention.

• Hickman Motors Ltd. v. Canada (SCC 1997) — affirmed that taxpayers bear the burden of proving compliance and timeliness.

These precedents emphasize that proactive registration and documentation are your best defense against reassessment.

Documentation: Proof of Registration and Recordkeeping
Once registered, maintain:

• CRA and Revenu Québec registration letters.

• Copies of all correspondence confirming activation.

• Updated invoices showing both tax numbers.

• Accounting records proving taxes collected and remitted.

• Bank statements linking deposits to remittances.

Keep these records for at least six years under Tax Administration Act s.34.

How CRA and Revenu Québec Verify Registrations
Both agencies use data-matching to confirm registration accuracy:

• Revenu Québec cross-checks sales reports with GST filings.

• CRA verifies interprovincial suppliers’ tax numbers.

• Bank and merchant processor data are reviewed for undeclared taxable sales.

If a business collects tax without registration—or fails to collect after the threshold—it can face penalties or retroactive assessments. Mackisen CPA monitors clients’ revenues monthly to ensure timely registration and prevent these issues.

Winning With CRA and Revenu Québec
At Mackisen CPA Montreal, our registration system is designed to help new businesses succeed from the start:

1. Registration Analysis – We determine your exact registration date under the law.

2. Simultaneous Registration – We register you for GST/HST and QST through CRA and ARQ simultaneously.

3. Documentation Setup – We update your invoices, accounting software, and reporting systems.

4. Training and Compliance – We teach your staff how to charge, collect, and remit taxes correctly.

5. Audit Protection – We prepare your registration proof file for CRA or Revenu Québec verification.

Mackisen Service Hub: Business Startup and Compliance Experts
The Mackisen Service Hub helps entrepreneurs launch businesses with precision and compliance. Services include:

• CRA and Revenu Québec registration for all tax accounts.

• GST/QST system configuration in accounting software.

• Legal structure consultation and fiscal planning.

• Filing calendar setup and compliance tracking.

Our bilingual team—CPA auditors, tax lawyers, and registration specialists—are graduates of McGill, Université de Montréal, and Concordia University, combining legal precision with business practicality.

Real Client Example
A Montreal retailer opened operations in January but delayed GST/QST registration until April, after exceeding $30,000 in sales. Revenu Québec reassessed $12,800 in uncollected taxes plus penalties. Mackisen CPA filed a voluntary registration correction under Tax Administration Act s.94.1, documented proof of timely good faith efforts, and secured full penalty relief.

Why Mackisen
With over 35 years of combined CPA and legal experience, Mackisen CPA Montreal ensures your GST/HST and QST registration is fast, compliant, and audit-ready. We don’t just get you registered—we build the foundation for your business to grow with confidence, accuracy, and total tax compliance.