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

A surprising number of entrepreneurs believe that if their business had no sales during a filing period, they do not need to file a GST/QST return. This is incorrect—and extremely dangerous. Filing a return is mandatory even if your business made no revenue. Failure to file a zero-sales return leads to penalties, refund freezes, audit flags, and potential compliance enforcement from CRA or Revenue Québec. This guide explains how to file a clean zero-sales return safely, following Mackisen CPA Montreal’s professional compliance standards.

Why Zero-Sales Returns Matter
Even with no sales, your business may still have paid GST/QST on expenses. Filing a zero-sales return allows you to claim ITCs (GST credits) and ITRs (QST refunds). Failing to file not only triggers penalties but also blocks refunds.

Legal and Regulatory Framework
The Excise Tax Act and Tax Administration Act require every registrant to file returns for each reporting period. Hickman Motors (1997) confirms the burden of proof for all claims. Canderel (1998) requires returns to reflect commercial reality, even if that reality is zero revenue.

What Happens If You Don’t File
Imagine forgetting to file your GST/QST return because you had no sales. After two months, you receive a notice titled “Failure to File.” You now owe penalties despite having collected no tax. CRA or RQ applies interest daily. Your future refunds are frozen. Your business is flagged as non-compliant, and your odds of being audited increase significantly. This spiral can last for years unless addressed.

Learning Section: Zero Sales Does Not Mean Zero Filing
You must file even if you had:
No income
No clients
No completed projects
No sales orders
No invoice activity
Filing is mandatory regardless of activity.

SEO Learning: Primary and Secondary Keywords
Primary: zero-sales GST return, file GST no sales, Quebec zero-sales QST, GST QST nil return.
Secondary: GST/QST filing requirements, nil return penalties, CRA zero-sales filing.

How to File a Zero-Sales Return Correctly
Step 1: Log into CRA or Mon Dossier.
Step 2: Enter “0” for sales.
Step 3: Enter GST/QST collected as “0.”
Step 4: Enter ITCs/ITRs if you had expenses.
Step 5: Submit return.
Step 6: Save confirmation.
Even if everything is zero, the filing must be submitted.

Documentation Section
Bank statements
Expense receipts
Invoices
Proof of payment
Reconciliation reports
You must keep documentation even for zero-sales months, in case RQ or CRA questions the inactivity.

Common Mistakes
Believing zero sales means no filing
Forgetting deadlines
Failing to claim refundable credits
Not reconciling expenses
Not saving filing confirmations

Winning With Revenue Québec and Canada
Mackisen ensures that zero-sales periods are filed correctly, refunds are claimed, and compliance flags are avoided. We also monitor your accounts for filing reminders and notices.

Mackisen Service Hub
We handle GST/QST filing, reconciliation, refund management, and compliance tracking for periods with and without sales.

Why Mackisen
With 35+ years of CPA experience, Mackisen ensures your zero-sales returns are filed flawlessly and never trigger penalties or audit risk.