How to Close Your GST/QST Account When Your Business Shuts Down — Montreal CPA Firm

Closing your business is stressful enough — but failing to properly close your GST/QST accounts can lead to penalties, interest, automated assessments, and compliance issues long after operations have ended. Many business owners believe that once they stop selling or issue their last invoice, their tax responsibilities automatically end. They do not. CRA and Revenue Québec continue to expect returns until you officially request cancellation and file your final return. This guide shows you how to shut down your GST/QST accounts safely and professionally using Mackisen’s proven closure protocol.

Why Closing GST/QST Accounts Properly Matters
If you do not close your accounts, CRA and RQ will continue expecting tax returns. Each missed return triggers failure-to-file penalties, interest, and potential collection action. Your refund claims may get frozen, and your name may be added to non-compliant lists. Proper closure protects your finances and your future credit standing.

Legal and Regulatory Framework
Account closures fall under the Excise Tax Act and Tax Administration Act. GST and QST accounts remain active until officially cancelled, regardless of activity. Hickman Motors (1997) establishes that taxpayers remain responsible for compliance obligations until accounts are formally closed.

What Happens When You Forget to Close Your Accounts
Imagine your business shuts down in July. You believe everything is finished. Six months later you receive a notice: “We have not received your GST/QST return.” Another arrives the next month. Penalties accumulate. CRA begins collections because they assume unpaid taxes. Revenue Québec flags your account and freezes any refund you might be expecting from your income tax return. Your inactive business becomes a financial burden. This happens every day to owners who forget to close their GST/QST accounts.

Learning Section: When to Close Your Accounts
You should close your GST/QST accounts when:
You cease commercial activity
You no longer make taxable supplies
You sell your business
You transfer ownership
Your revenue drops permanently below small supplier status, and you choose voluntary cancellation
You must still file your final return.

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Step-by-Step: How to Close Your GST Account
Log into CRA My Business Account
Select the GST/HST (RT) program
Choose “Close Account”
Enter the closure date (last day of commercial activity)
File your final GST return
Pay any balance owing
Save your closure confirmation

Step-by-Step: How to Close Your QST Account
Log into Mon Dossier pour les entreprises
Select your QST account
Choose “Close a File”
Enter closure details and effective date
File your final FPZ-500-V return
Pay any amount owing
Save the closure certificate

Documentation Section
Final invoice records
Final bank statements
Final ITC/ITR calculations
Final GST/QST reconciliation
CRA/RQ closure confirmations
All documents must be kept for six years.

Common Mistakes
Closing GST but forgetting QST
Not filing a final return
Choosing the wrong closure date
Missing outstanding balances
Not reconciling merchant deposits
Failing to save closure confirmations

Winning With Revenue Québec and Canada
Mackisen closes accounts properly, files final returns, reconciles balances, and prepares documentation to protect you from future inquiries. We ensure both agencies recognize your business as officially closed.

Mackisen Service Hub
We handle GST/QST closure, final filings, account reconciliation, and communication with tax authorities.

Why Mackisen
With over 35 years of CPA experience, Mackisen ensures your business closes cleanly and safely, protecting you from penalties and long-term tax problems.