Charging sales tax correctly in Quebec as an out-of-province business can be confusing, especially with the unique Quebec Sales Tax (QST) system and the special rules adopted for non-resident businesses. Whether you operate from Ontario, British Columbia, Alberta, or even outside Canada, you may still be required to register for QST, charge QST to customers, and file GST/QST returns depending on how and where you conduct business. Quebec has some of the strictest rules in Canada for non-resident tax compliance because Revenu Québec administers both GST and QST within the province. Understanding when and how to charge these taxes is essential to avoid penalties, interest, and compliance problems.

Out-of-province businesses often assume that they do not need to charge Quebec sales tax if they have no physical presence in the province. However, digital services, e-commerce sales, remote consulting, software subscriptions, and delivery of goods into Quebec may create tax obligations even without employees or offices in the province. Quebec’s tax laws ensure that consumers in Quebec pay the same taxes whether they buy from local or out-of-province suppliers. This guide explains when you must register, how to charge GST and QST, and how to stay compliant as a non-resident business serving Quebec customers.

LEGAL AND REGULATORY FRAMEWORK

Quebec’s sales tax system is governed by the Quebec Taxation Act and Revenu Québec’s remote seller rules. The main requirement is that an out-of-province business must register and charge QST if it has a significant presence in Quebec through sales or digital supplies. A business located anywhere in Canada but outside Quebec must register for QST under the specified registration system if their worldwide taxable supplies exceed thirty thousand dollars in a twelve-month period and they sell taxable goods, services, or digital products to customers in Quebec.

Remote business rules apply to companies selling digital services, software, streaming services, online platforms, SaaS subscriptions, consulting, and goods delivered by courier. Once registered, the business must charge QST at the same rate as Quebec suppliers and remit the tax through quarterly or monthly filings. GST rules also apply under the federal Excise Tax Act, meaning a business selling to Quebec customers may need to charge both GST and QST depending on the nature of its operations.

KEY COURT DECISIONS

Canadian courts have consistently upheld the right of provinces and the federal government to require non-resident businesses to register and collect consumption taxes when they have meaningful economic activity within the jurisdiction. In several cases involving online sellers and remote service providers, courts confirmed that a physical presence is no longer needed to create a tax obligation. Decisions involving digital platforms established that providing services to users located in a province triggers tax responsibilities even if the company operates from outside the jurisdiction.

Quebec decisions also support the principle that consumers must pay the appropriate QST regardless of where the supplier is located. Businesses that fail to comply risk penalties, reassessments, and interest, and they bear the burden of proving whether their activities were exempt. These rulings highlight the importance of proper registration and compliance for out-of-province companies.

WHY CRA AND REVENU QUÉBEC TARGET THESE ISSUES

Revenu Québec closely monitors out-of-province businesses because digital commerce and cross-border sales have grown significantly. When businesses fail to charge QST, the government loses substantial revenue. Remote sellers and digital platforms are major targets for compliance reviews, especially when they generate significant sales within Quebec. Industries such as e-commerce retailers, software companies, consultants, subscription-based services, and online training platforms often receive letters asking them to register for QST.

Another reason for increased scrutiny is fairness to Quebec businesses. Local companies must charge QST, so Revenu Québec enforces the same rule on out-of-province companies to prevent competitive imbalances. When a non-resident does not charge QST, Quebec customers may owe self-assessed tax, which creates administrative challenges. As a result, Revenu Québec actively identifies businesses that should be registered.

MACKISEN STRATEGY

Mackisen CPA helps out-of-province businesses determine whether they must charge GST and QST, register under the correct system, and comply with all filing obligations. We assess the nature of your business activities, the type of products or services you provide, the location of your customers, and whether you exceed the thirty-thousand-dollar threshold. Our firm prepares QST and GST registrations, sets up online accounts, and ensures that your invoicing system applies the correct tax rates for Quebec customers.

We also implement bookkeeping processes so your GST/QST returns remain accurate and audit-ready. Our team reviews how your business manages digital sales, shipping logistics, and automated checkout systems to ensure that QST is charged correctly. If a company failed to register on time, we help rectify past periods, avoid penalties through voluntary disclosures, and bring the business back into compliance. Mackisen also assists clients in responding to Revenu Québec correspondence about remote seller rules.

REAL CLIENT EXPERIENCE

A software company based in British Columbia sold monthly subscriptions to thousands of Quebec customers but had never registered for QST because they assumed physical presence was required. Revenu Québec contacted them regarding remote seller rules. Mackisen analyzed their sales, registered them for QST, corrected their invoicing system, and filed all required returns. The company avoided penalties through early disclosure and is now fully compliant.

A US-based e-commerce retailer shipped goods to Quebec customers but did not charge QST. After receiving a request for information from Revenu Québec, the business contacted Mackisen. We determined that they met the economic activity threshold and assisted them in registering as a non-resident QST filer. We also provided templates for compliant invoices and helped streamline tax remittance.

A consulting firm in Ontario offered virtual services to clients in Montreal. The firm was unclear about whether to charge QST. Mackisen reviewed their operations and confirmed that they were required to register because their services were consumed in Quebec. We guided them through QST registration, invoicing changes, and ongoing obligations.

COMMON QUESTIONS

Do I need to register for QST if I sell to Quebec customers but have no office in Quebec
Yes. If you sell taxable goods or services to Quebec customers and exceed the registration threshold, you must register.

Do I need to charge both GST and QST
In most cases, yes. Out-of-province businesses supplying taxable goods or services to Quebec customers must charge both taxes.

What if I only sell digital products
Digital goods and services are fully taxable in Quebec, and remote sellers must register under the specified QST system.

What happens if I fail to register
You may face penalties, interest, and retroactive tax obligations. Voluntary disclosures can sometimes reduce penalties.

How do I register for QST as a non-resident
Registration is completed through Revenu Québec’s website under the specified registration system, and Mackisen CPA can handle the entire process.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you operate in Quebec, another province, or internationally, our expert team ensures precision, transparency, and protection from tax exposure. We specialize in helping out-of-province businesses understand and comply with GST and QST obligations.