How to Claim Input Tax Refunds (ITRs) for QST: A Quick Guide — Montreal CPA Firm

Input Tax Refunds (ITRs) are one of the most valuable tools available to Quebec businesses. Every time your business pays QST on expenses — rent, software, advertising, equipment, subcontractors, tools, supplies — you are entitled to recover that tax as long as certain rules are met. Yet thousands of businesses lose money every year because they do not claim ITRs correctly, fail to keep the right documentation, or misunderstand eligibility. Revenue Québec is extremely strict when it comes to ITRs, and even one missing invoice number, supplier QST number, or incorrect tax code can lead to refund denials. This guide explains exactly how to claim ITRs properly and safely using the precise system that Mackisen CPA Montreal uses to protect its clients and maximize refunds.

Why ITRs Matter
QST paid on business expenses can quickly add up. For businesses with high expenses—such as contractors, consultants, retailers, e-commerce sellers, or professional services—ITRs can generate thousands of dollars in refunds every filing period. For startups, ITRs significantly reduce the cost of beginning operations. When done correctly, ITR claims can improve cash flow, reduce tax payable, and strengthen your financial position.

Legal and Regulatory Framework
ITRs fall under Quebec’s Tax Administration Act. To be eligible:
You must be registered for QST
The expense must be for commercial activity
You must have a valid invoice showing QST
You must have proof of payment
Documentation must be retained for six years
Hickman Motors (1997, SCC) confirms the taxpayer bears the burden of proof.
Canderel (1998, SCC) requires that tax filings reflect commercial reality.
Lac d’Amiante (2001, SCC) reinforces that RQ may deny claims if documentation is incomplete or inaccurate.

What Happens When ITRs Are Denied
Picture this: You file your QST return expecting a $9,200 refund. Two weeks later, instead of receiving the money, you get a Request for Information from Revenue Québec. They ask for invoices, proof of payment, supplier information, contracts, and reconciliation reports. You discover that three key suppliers did not include their QST numbers, several receipts are illegible, and some purchases were coded incorrectly. RQ denies the entire refund. Worse, your next returns are automatically flagged for review. Your cash flow collapses overnight. This nightmare scenario happens every week — and it is completely preventable with proper ITR management.

Learning Section: What Counts as an Eligible ITR
Eligible ITRs include QST paid on:
Rent and utilities (commercial portion only)
Office supplies and equipment
Professional fees (CPA, legal, marketing, IT)
Software subscriptions
Advertising and marketing
Subcontractors and labor
Travel and lodging (meals at 50%)
Tools and machinery
Vehicle expenses (business portion only)
Inventory purchases
Training and development
The key rule: the expense must be used to generate taxable commercial activity.

SEO Learning: Primary and Secondary Keywords
Primary keywords: claim QST refund Quebec, Input Tax Refunds ITR guide, Quebec tax refunds Montreal.
Secondary keywords: QST ITR documentation, recover QST expenses, Revenue Québec ITR rules.

How to Claim ITRs Properly
Step 1: Collect valid supplier invoices showing QST amount and supplier QST number
Step 2: Ensure every expense is tied to taxable business activity
Step 3: Gather proof of payment (bank statements, e-transfers, credit card statements)
Step 4: Code expenses correctly using proper tax codes in your accounting software
Step 5: Reconcile QST collected and QST paid monthly or quarterly
Step 6: Enter ITR totals on your FPZ-500-V return
Step 7: Retain all documentation for six years to support your claim
ITRs must be claimed in the same period the expense was incurred unless you follow the four-year carry-forward rule.

Documentation Section: What You Must Keep
Supplier invoices
Contracts
Proof of payment
Merchant processor statements
Bank statements
Expense reports
Reconciliation worksheets
Zero-rated sale documentation (if applicable)
Filing confirmations
You must retain these for six years because RQ may re-open any filing period during that time.

Common Mistakes
Claiming ITRs on personal expenses
Missing supplier QST numbers
Using credit card slips instead of invoices
Incorrect tax coding in accounting software
Claiming expenses before effective QST registration date
Not prorating mixed-use expenses
Failing to match payment proofs to invoices
Not reconciling monthly

Winning With Revenue Québec and Canada
Mackisen uses a structured ITR review checklist to ensure every claim is supported, accurate, and defensible. We verify supplier tax numbers, match invoices to bank statements, categorize expenses correctly, and prepare a complete ITR binder. If Revenue Québec requests information, we respond immediately with a complete package to release your refund quickly.

Mackisen Service Hub
We provide:
Full ITR review and optimization
QST refund preparation
Audit-ready documentation
Reconciliation of QST accounts
Response to Requests for Information
Corrected filings and amendments
Software tax code configuration
Our comprehensive system ensures maximum refunds and zero denials.

Why Mackisen
With more than 35 years of CPA and audit experience, Mackisen CPA Montreal ensures your ITR claims are accurate, fully documented, and strategically optimized. We protect your refunds, improve your cash flow, and defend your file against any possible Revenue Québec review.