How to File a Zero-Sales GST/QST Return (No Sales in the Period)

Introduction

Even if your business had no sales or revenue in a reporting period, you are still legally required to file a GST and QST return with the Canada Revenue Agency (CRA) and Revenu Québec. Failing to do so can trigger penalties, interest, and compliance flags that may affect future refunds or audits.

This guide from Mackisen CPA Montreal explains how to file a zero-sales (nil) GST/QST return, why it’s important, and how to avoid the common mistakes that cause late-filing penalties — even when you don’t owe a cent.

Legal and Regulatory Framework

Under both the Excise Tax Act (R.S.C. 1985, c. E-15) and the Quebec Sales Tax Act (R.S.Q., c. T-0.1), all registered businesses must file periodic GST and QST returns — regardless of whether they earned taxable revenues.

Once you register for GST and QST, you agree to file every month, quarter, or year as assigned. A nil return is a legal filing, just like a return showing sales or tax due.

Penalties for Non-Filing

If you fail to file a zero-sales return:

• Revenu Québec and CRA automatically assume taxes were collected and unpaid.

• Late-filing penalties and interest begin immediately.

• Your account may be flagged for compliance monitoring or audit.

Learning Insight

Filing even when there’s no activity shows good faith and preserves your compliance record — essential for loans, refunds, and supplier trust.

Step-by-Step: How to File a Zero-Sales GST/QST Return

Step 1 — Prepare Your Records

Even if you made no sales, gather:

• Your bank statements for the period.

• Accounting reports confirming zero revenue.

• Purchase receipts or expense summaries (for potential Input Tax Credits or Refunds).

Keep these in your audit binder to prove inactivity if requested.

Step 2 — Log In to the Filing Portals

For QST:
Go to revenuquebec.ca → Mon dossier pour les entreprises.
Log in using your clicSÉQUR credentials.

For GST:
Go to canada.ca/my-business-account.
Sign in with your CRA credentials or banking partner.

If you file both taxes together through Mon dossier, the system automatically transmits the GST portion to CRA.

Step 3 — Select the Correct Filing Period

In both portals, choose the period displayed as “open” or “pending.”
Confirm start and end dates match your accounting records.

If the wrong period appears, contact Revenu Québec or CRA to correct your account before filing.

Step 4 — Enter “Zero” in All Sales and Tax Fields

For both GST and QST sections:

• Line 101 (Gross sales): 0

• Line 105 (GST collected): 0

• Line 108 (Input Tax Credits): 0

• Line 109 (Net tax): 0

If you incurred expenses during the period, you may still claim ITCs or ITRs. In that case, enter the appropriate amounts and attach supporting documentation if requested later.

Learning Insight

Entering “0” is different from skipping the return entirely. CRA and Revenu Québec treat missing returns as delinquent, not nil.

Step 5 — Review and Submit

Confirm that all lines show zero (or correct refund amounts).
Click Submit, and note the confirmation number.
Download or print the PDF confirmation for your records.

Revenu Québec and CRA do not mail confirmations — your on-screen or PDF proof is the only valid evidence of filing.

Step 6 — Reconcile and File on Time

Even with no balance due, the filing deadline remains:

• Monthly/Quarterly – one month after the period end.

• Annual – three months after fiscal year-end.

Missing these deadlines still triggers late-filing penalties.

Common Mistakes to Avoid

• Skipping a filing because “there were no sales.”

• Filing only GST but forgetting QST.

• Entering blank fields instead of zeros.

• Ignoring confirmation receipts.

• Assuming your accountant filed without verification.

Learning Insight

Revenu Québec and CRA systems are automated — missing one filing period can block future refunds or credits until the backlog is cleared.

Real Quebec Business Example

A Montreal cleaning service had no clients for three months but failed to file nil returns. When business resumed, Revenu Québec withheld a $2,400 refund until the missing filings were submitted.

Another small retailer filed nil returns on time each quarter and kept perfect compliance, making it easier to secure financing.

Lesson: File even when business is slow — compliance builds trust.

Compliance Checklist

Do

• File every period, even with no sales.

• Keep records showing zero activity.

• Enter zeros, not blanks, on all lines.

• Save confirmation PDFs from CRA and Revenu Québec.

• Reconcile before filing to ensure accuracy.

Don’t

• Wait until next quarter to “catch up.”

• Assume nil returns are optional.

• Ignore CRA or Revenu Québec notices.

• Forget to file QST if you filed GST.

Mackisen Strategy

Mackisen CPA Montreal keeps clients compliant with a proactive zero-sales filing process. We:

1. Set automated reminders based on your reporting frequency.

2. Prepare and submit nil returns directly through Mon dossier or CRA MBA.

3. Maintain audit-ready proof for each filing.

4. Monitor accounts for penalty or interest notices.

Our CPA team ensures your compliance record stays spotless — even when business slows down.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant with CRA and Revenu Québec — no matter their size or activity level. Whether you had sales or not, our bilingual team ensures accuracy, transparency, and peace of mind.