Quebec’s new QST rules for non-resident suppliers represent one of the most important tax changes affecting Canadian and international businesses selling into Quebec. These rules require out-of-province and foreign suppliers to register for QST, collect QST from Quebec consumers, and remit the tax even if they have no physical presence in the province. The laws target remote sellers, digital platforms, subscription services, SaaS companies, online retailers, marketplaces, and any supplier delivering goods or services to Quebec customers. Failure to comply can lead to penalties, aggressive enforcement by Revenu Québec, and interruption of online operations. This guide explains how to comply with Quebec’s new QST rules for non-resident suppliers, how to determine your registration obligation, and how to implement compliant systems.

Quebec’s new framework ensures that Quebec consumers pay the same QST whether they purchase from local businesses or non-resident vendors. The rules apply to digital content, remote services, online subscriptions, streaming platforms, tangible goods shipped into Quebec, and B2B or B2C transactions depending on the registration system. Understanding the rules is essential for maintaining smooth market access and avoiding costly tax assessments.

LEGAL AND REGULATORY FRAMEWORK

The new QST rules for non-resident suppliers fall under sections of the Quebec Taxation Act dealing with remote seller registration, specified registration systems, and tax collection for non-resident businesses. The rules apply to two categories of suppliers. Canadian non-residents that are not considered to be carrying on business in Quebec but exceed the thirty-thousand-dollar threshold must register under the specified QST regime. Foreign non-residents, including US, European, Asian, and other international companies, must also register under the specified regime.

Suppliers considered to be carrying on business in Quebec—such as those with physical presence, employees, or significant activities—must register under the regular QST system and may claim input tax refunds. Under the specified registration system, non-resident suppliers must charge QST on taxable supplies made to specified Quebec consumers but are not entitled to input tax refunds.

The rules apply to digital services, streaming platforms, cloud software, SaaS subscriptions, apps, downloadable content, online training, consulting services delivered remotely, and goods shipped into Quebec. Marketplaces may also be required to collect QST on behalf of third-party sellers. The supplier must maintain documentation proving the consumer is located in Quebec, such as billing addresses, IP location data, postal codes, or payment information.

KEY COURT DECISIONS

Court decisions in Canada and internationally support governments requiring non-resident suppliers to collect consumption taxes when selling into local markets. In cases involving digital platforms and cross-border ecommerce, judges rejected arguments that physical presence is required for tax obligations. Courts recognized that modern commerce allows businesses to generate significant revenue in a jurisdiction without physical operations.

Quebec-specific cases showed that suppliers claiming they had insufficient ties to the province were still deemed liable because they knowingly targeted Quebec consumers. Courts upheld Revenu Québec’s assessments and penalties when suppliers failed to register despite meeting remote seller thresholds. These rulings reinforce that non-resident suppliers must take Quebec’s rules seriously and comply proactively.

WHY CRA AND REVENU QUÉBEC TARGET THESE ISSUES

Revenu Québec targets non-resident suppliers because remote sales represent a major and growing portion of the Quebec economy. When these businesses fail to charge QST, Quebec loses substantial tax revenue. Digital suppliers, subscription-based businesses, ecommerce platforms, and remote service providers are particularly scrutinized. Billing data, online transactions, and marketplace reporting help Revenu Québec identify non-resident suppliers operating without QST registration.

Audit triggers include Quebec billing addresses without corresponding QST filings, payment processors showing Quebec-based payments, sudden surges in remote sales, and ecommerce marketplaces reporting foreign seller activity. Revenu Québec enforces these rules aggressively to establish fairness between Quebec businesses and remote suppliers.

MACKISEN STRATEGY

Mackisen CPA helps non-resident suppliers comply with Quebec’s QST rules by performing a full compliance assessment, determining whether the business must register, identifying the correct registration system, and setting up QST accounts. We analyze your sales channels, digital infrastructure, customer locations, and billing systems to determine whether you exceed the threshold and what obligations apply.

We complete the registration with Revenu Québec, obtain the QST number, and ensure your ecommerce or billing systems apply the correct tax rates. Mackisen updates Shopify, WooCommerce, Stripe, Amazon, or custom platforms to automate QST collection. We create compliant invoicing templates, prepare FPZ-500-V returns if required, and implement audit-ready documentation systems. For foreign suppliers already selling into Quebec without registration, we prepare voluntary compliance files to reduce penalties.

REAL CLIENT EXPERIENCE

A US-based SaaS provider offering monthly subscriptions to Quebec users received a notice from Revenu Québec. They had no physical presence in Canada and assumed they had no obligations. Mackisen determined they met the remote seller threshold, registered them under the specified system, and integrated automated QST calculation in their billing system.

An Ontario ecommerce retailer did not realize that shipping goods to Quebec customers required QST collection. After receiving a compliance request, they contacted Mackisen. We registered them, updated their checkout process, and prepared their first QST return.

A European digital content platform with Quebec subscribers was unaware that Quebec required non-resident streaming services to collect QST. Mackisen analyzed their data, set up the specified registration system, and implemented digital location verification tools to ensure correct tax collection.

COMMON QUESTIONS

Who must register under Quebec’s new QST rules
Canadian and foreign non-resident suppliers exceeding the thirty-thousand-dollar threshold selling taxable goods or services to Quebec consumers.

Do digital service providers need to collect QST
Yes. SaaS, streaming, apps, subscription content, and online training are fully taxable.

What is the difference between specified and regular QST registration
Specified registration applies to non-residents and does not allow input tax refunds. Regular QST applies to businesses carrying on business in Quebec.

Do foreign suppliers need to register
Yes. All foreign suppliers meeting the threshold must register under the specified regime.

Can I avoid penalties if I register late
Possibly. Mackisen helps non-residents file voluntary disclosures to reduce interest and penalties.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Canadian and international businesses stay compliant with Quebec’s QST system. Whether you are a SaaS provider, ecommerce retailer, consultant, or digital platform, our expert team ensures precision, transparency, and full compliance with Quebec’s non-resident QST rules.