How to Charge and Remit QST for Online Digital Products — Montreal CPA Firm Near You

Quebec has some of the strictest digital tax laws in North America. Whether you sell downloadable products, e-learning courses, memberships, digital templates, stock photos, software, SaaS subscriptions, or virtual coaching, you may be required to charge QST — and sometimes GST — based on where your customers are located and how they use your digital product. Misunderstanding digital tax rules is one of the biggest triggers for Revenue Québec audits. This guide explains how to correctly charge and remit QST for digital products using Mackisen’s proven compliance model.

Why Digital Tax Compliance Matters
Revenue Québec specifically targets digital product sellers because the transactions are borderless and often automated. Incorrect tax settings in Shopify, Thinkific, Kajabi, Squarespace, Teachable, or WooCommerce lead to missing QST. RQ detects these errors by reviewing Stripe, PayPal, and Shopify payouts. If your digital product is consumed in Quebec, you are required to charge QST — even if your business is outside Quebec. Mistakes result in reassessments, penalties, and refund freezes.

Legal and Regulatory Framework
Quebec’s digital tax rules fall under the Tax Administration Act and the “specified digital supplier” rules updated in 2019. These require non-residents and Canadian businesses selling digital products to Quebec consumers to charge QST. GST rules fall under the Excise Tax Act. Hickman Motors (1997) confirms the taxpayer’s obligation to document compliance. Canderel (1998) reinforces that filings must reflect commercial reality — including digital sales.

The Digital Seller’s Audit Nightmare
Imagine running a digital course business for two years. You assumed your platform handled tax. Suddenly, Revenue Québec audits your Stripe deposits. They discover thousands of dollars from Quebec customers without QST collected. You owe QST for every sale — out of pocket — plus penalties and interest. Meanwhile, your refund is frozen, your account is flagged, and you must correct two years of returns. This situation happens constantly because digital platforms default to U.S. tax logic.

Learning Section: How Digital QST Works
You must charge QST when:
The customer is located in Quebec
The digital product is used or consumed in Quebec
You sell SaaS, downloads, memberships, templates, or e-learning
You exceed or voluntarily register under QST rules
You must NOT charge QST when the customer is outside Quebec and uses the product elsewhere. GST/HST may still apply depending on the jurisdiction.

SEO Learning: Primary and Secondary Keywords
Primary: QST digital products Quebec, tax on digital services Quebec, QST for online courses.
Secondary: Shopify tax Quebec, digital product GST rules Canada, Quebec SaaS taxation.

How to Charge QST Correctly for Digital Products
Ensure your platform supports Quebec tax calculation
Set up QST at 9.975% on GST-inclusive price
Enable GST 5% for Quebec customers
Verify that customers in ON/NB/NS/NL/PEI are charged HST
Ensure U.S./international customers are charged 0%
Check IP, billing, and shipping address detection
Audit platform tax settings monthly
Correct transactions manually if needed

How to Remit QST for Digital Products
File FPZ-500-V through Mon Dossier
Enter digital sales revenue
Enter QST collected
Enter your ITRs
Reconcile Stripe/PayPal/Shopify payouts
Submit return and pay QST owing
Retain all documentation for six years

Documentation Section
Platform tax configuration screenshots
Invoicing templates for digital products
Shopify/Stripe/PayPal reports by province
Proof of payment
Export logs for customers outside Quebec
Reconciliation worksheets
Filing confirmations
Required for six years.

Common Mistakes
Charging GST but not QST
Using U.S. platform tax settings
Failing to include digital memberships as taxable
Incorrectly taxing customers outside Quebec
Failing to track customer location
Not reconciling merchant processor reports
Assuming international sales never require tax

Winning With Revenue Québec and Canada
Mackisen configures platform tax settings, reconciles digital payouts, verifies customer location, builds compliance files, and files accurate GST/QST returns for digital businesses. We eliminate the risk of reassessments caused by automated platform errors.

Mackisen Service Hub
We manage digital taxation setup, multi-province digital compliance, filing, refunds, and audit-defense documentation.

Why Mackisen
With deep digital product expertise and 35+ years of CPA experience, Mackisen ensures your digital QST/GST compliance is accurate, profitable, and fully defensible.