How to Close Your GST/QST Account When Your Business Shuts Down

Introduction

When a business closes in Quebec, its obligations don’t end immediately. Even after you stop operating, you must officially close your GST and QST accounts with the Canada Revenue Agency (CRA) and Revenu Québec to prevent future assessments, penalties, or correspondence.

This guide from Mackisen CPA Montreal explains how to properly close your GST/QST accounts, file your final returns, and ensure your business is fully deregistered with both tax authorities.

Legal and Regulatory Framework

Under the Excise Tax Act (R.S.C. 1985, c. E-15) and the Quebec Sales Tax Act (R.S.Q., c. T-0.1), businesses registered for GST and QST must file returns and remit any taxes collected until their accounts are officially cancelled.

Closing your business without notifying CRA and Revenu Québec leaves your registration active — meaning you’re still responsible for filing, even if you’ve stopped operations.

Learning Insight

Filing a “final return” and cancelling registration are separate steps. You must do both to fully close your GST/QST accounts.

Step-by-Step: How to Close Your GST/QST Account

Step 1 — Confirm That Operations Have Ended

Before closing your accounts, ensure that:

• You have stopped making taxable sales or supplies.

• All inventory has been sold or written off.

• Final invoices have been issued and taxes collected.

• Outstanding GST/QST returns have been filed.

If you’re incorporating a new business or changing structure, do not close the old accounts until the transition is complete.

Step 2 — File All Outstanding Returns

You must file every pending GST and QST return up to the closure date, even if you had no sales.

For GST:

• File through CRA’s My Business Account or by paper using your final return.

For QST:

• File through Mon dossier pour les entreprises at revenuquebec.ca.

Mark your last return as the final period and report:

• All taxable sales up to your closing date.

• Any Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) you can still claim.

• Any adjustments or corrections before closure.

Learning Insight

Your last filing period ends the day you stop commercial activities — not the fiscal year-end.

Step 3 — Calculate and Remit Final GST/QST Owing

Pay any outstanding balances through online banking or direct debit.
If you owe tax on the fair market value of any business assets (inventory, furniture, vehicles) kept for personal use after closure, include it in your final return.

Example:
If you retain a laptop originally used for business, you must account for GST/QST on its fair market value in your last return.

Step 4 — Request Account Closure

A. Close Your QST Account (Revenu Québec)

1. Log in to Mon dossier pour les entreprises.

2. Go to Consumption Taxes → Close a Consumption Tax Account.

3. Select the account (TVQ) and enter your effective closure date.

4. Confirm you have filed all returns and remitted all payments.

5. Submit and keep your confirmation number.

Alternatively, you can complete Form LM-1.A – Request to Close a Consumption Tax Account and mail it to Revenu Québec.

B. Close Your GST Account (CRA)

1. Log in to canada.ca/my-business-account.

2. Under your GST/HST (RT) account, choose “Close account.”

3. Enter the effective date of closure and reason for ending business.

4. Review and confirm.

You can also call CRA’s Business Enquiries Line (1-800-959-5525) or send Form RC145 – Request to Close Business Number (BN) Accounts.

Learning Insight

Both CRA and Revenu Québec may contact you for confirmation or request a copy of your final return before closing the accounts. Keep records accessible for at least six years.

Step 5 — Keep Records After Closure

Even after your accounts are closed, you must retain all business books, invoices, and records for six years. CRA or Revenu Québec may request them during that time.

If you stored records electronically, keep secure backups (cloud or USB).

Step 6 — Watch for Final Notices

You’ll receive written or electronic confirmation once your GST and QST accounts are closed. This may take several weeks.

If you receive further correspondence about filing, contact your CPA — it may be due to overlapping period dates or automatic system triggers.

Common Mistakes to Avoid

• Stopping operations without formally closing accounts.

• Ignoring final filing requirements.

• Forgetting to include personal-use asset values in the last return.

• Failing to close both GST and QST accounts.

• Discarding records too early.

Learning Insight

Even nil activity after closure does not exempt you from filing until CRA and Revenu Québec confirm your deregistration in writing.

Real Quebec Business Example

A self-employed contractor ceased operations but didn’t close his QST account. Revenu Québec assessed estimated returns for two years, totaling over $4,000 in penalties and interest.

Another business filed final GST/QST returns, remitted all taxes, and obtained confirmation letters within six weeks — with zero penalties.

Lesson: formal closure saves time, money, and stress.

Compliance Checklist

Do

• File all pending GST/QST returns before requesting closure.

• Report and remit tax on any retained business assets.

• Submit closure requests to both CRA and Revenu Québec.

• Keep all records for six years.

• Verify written confirmation of account closure.

Don’t

• Assume your account closes automatically after inactivity.

• Delay paying outstanding balances.

• Forget to close GST and QST simultaneously.

• Discard tax records prematurely.

Mackisen Strategy

At Mackisen CPA Montreal, we ensure your business shutdown is handled professionally and completely. We:

1. Reconcile and file all final GST/QST returns.

2. Calculate taxes on retained assets.

3. Submit formal closure requests through both CRA and Revenu Québec portals.

4. Provide written confirmation for your records.

Our CPA-supervised process ensures full compliance and peace of mind.

Why Mackisen

With over 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses across Quebec close operations properly — ensuring clean records, no penalties, and a clear end to tax obligations.