How to Fill Out the FPZ-500-V GST/QST Return Form

Introduction
The FPZ-500-V GST/QST Return Form is the combined filing form that Quebec businesses use to report and remit both GST (Goods and Services Tax) and QST (Quebec Sales Tax) to Revenu Québec (ARQ). Whether you file online or on paper, understanding each line of the form ensures accuracy, prevents penalties, and protects you during audits.

At Mackisen CPA Montreal, we’ve helped thousands of Quebec entrepreneurs, contractors, and corporations file their GST/QST returns accurately and on time. This detailed guide explains how to complete the FPZ-500-V form step-by-step, interpret each section, and avoid the most common mistakes that lead to reassessments.

Legal and Regulatory Framework
The obligation to file and remit GST/QST is governed by:

• Excise Tax Act (Canada) s.225–s.228 — establishes GST return filing and reporting rules.

• Taxation Act (Quebec) s.407 — governs QST registration, collection, and return filing.

• Tax Administration Act (Quebec) s.59(3) — imposes daily compounded interest for late or incorrect filings.

• CRA and Revenu Québec electronic filing policies — outline acceptable digital return formats, deadlines, and payment methods.

All registered Quebec businesses must file FPZ-500-V returns according to their assigned frequency monthly, quarterly, or annually even if no tax was collected during the period (“nil return”).

Step-by-Step: How to Fill Out the FPZ-500-V GST/QST Return Form

The FPZ-500-V is divided into two main sections: GST (federal) and QST (provincial). The following steps explain each part in detail.

SECTION 1: GST (Goods and Services Tax)

1. Line 101 – Total Sales and Other Revenue (Before Tax)

   • Enter your total sales, commissions, and taxable revenues before GST/QST for the period.

   • Include taxable and zero-rated sales but exclude exempt revenues (e.g., residential rent, financial services).

2. Line 103 – GST Collected or Collectible

   • Report all GST you charged customers during the filing period, even if not yet received.

   • If you issued credit notes or refunds, adjust accordingly.

3. Line 104 – Adjustments to GST Collected

   • Enter negative amounts for discounts, returns, or write-offs.

   • Enter positive amounts for previously unreported taxable sales.

4. Line 105 – Total GST Collected

   • Add Lines 103 and 104. This represents total GST you owe before Input Tax Credits.

5. Line 106 – Input Tax Credits (ITCs)

   • Enter the total GST you paid on business purchases, expenses, and imports related to taxable activities.

   • Ensure all supplier invoices display valid GST numbers.

6. Line 108 – Net GST Owing or Refund

   • Subtract Line 106 (ITCs) from Line 105 (total GST collected).

   • If positive → you owe this amount. If negative → you are entitled to a refund.

SECTION 2: QST (Quebec Sales Tax)

7. Line 201 – Total Sales and Other Revenue (Before Tax)

   • Repeat total revenues from Line 101. QST is calculated separately from GST.

8. Line 202 – QST Collected or Collectible

   • Report all QST charged (9.975%) during the period, including on invoices not yet paid.

9. Line 203 – Adjustments to QST Collected

   • Report returns, discounts, or additional taxable sales as adjustments.

10. Line 205 – Total QST Collected

• Add Lines 202 and 203. This is your total QST liability before Input Tax Refunds.

11. Line 208 – Input Tax Refunds (ITRs)

• Enter the QST paid on business expenses, vehicle fuel, leases, or supplies used for taxable activities.

• Only claim QST supported by invoices with valid QST registration numbers.

12. Line 209 – Net QST Owing or Refund

• Subtract Line 208 from Line 205.

• A positive result means you owe QST; a negative one means you qualify for a refund.

SECTION 3: Final Calculations and Payment

13. Line 211 – Total GST and QST Net Tax

• Add Lines 108 (GST) and 209 (QST).

• This is the total you must pay (if positive) or the refund amount (if negative).

14. Line 213 – Interest or Penalty (If Applicable)

• If you’re filing late, calculate interest and penalties as per Revenu Québec’s daily rates.

• Alternatively, Revenu Québec will calculate these automatically.

15. Line 215 – Total Amount Payable

• Add Line 211 (tax owing) and Line 213 (penalties/interest).

16. Line 217 – Refund Requested

• If Line 211 is negative, enter that amount here to request your refund.

17. Signature and Date

• If filing on paper, sign and date the declaration before submission.

• If filing online via Mon Dossier, digital submission acts as your signature.

Important Deadlines

• Monthly Filers: Return due by the end of the following month.

• Quarterly Filers: Return due by the end of the month following the quarter.

• Annual Filers: Return due three months after fiscal year-end.

• Payment Deadline: Same date as filing deadline, even if you file electronically.

Failure to file or pay on time results in penalties under Tax Administration Act s.59(3) and Excise Tax Act s.280(1).

Jurisprudence and Legal Insight
Court cases have repeatedly confirmed that accuracy and documentation are the taxpayer’s responsibility:

• Hickman Motors Ltd. v. Canada (SCC 1997) — taxpayers bear the burden of proving GST accuracy through records.

• Canderel Ltd. v. Canada (SCC 1998) — tax filings must reflect commercial reality, supported by verifiable evidence.

• Lac d’Amiante du Québec Ltée (SCC 2001) — Revenu Québec may reassess any return lacking proper documentation.

These rulings make it clear that “good faith” is not enough—every figure must be supported by legitimate evidence.

Documentation: Audit-Proofing Your FPZ-500-V Filing
Keep the following for six years under Tax Administration Act s.34:

• Copies of all filed FPZ-500-V forms and confirmation receipts.

• Sales invoices showing GST/QST charged.

• Supplier invoices showing taxes paid.

• Bank statements matching payments or refunds.

• ITC/ITR calculations and reconciliation schedules.

• Correspondence with Revenu Québec regarding returns or adjustments.

At Mackisen CPA Montreal, we create a permanent Tax Filing Binder for each client linking all supporting documentation directly to the FPZ-500-V lines.

How Revenu Québec Audits GST/QST Returns
Revenu Québec audits FPZ-500-V filings by reviewing:

• Consistency between sales declared and income tax filings.

• Validity of ITCs and ITRs based on supplier GST/QST registration numbers.

• Timing of claimed credits versus payment dates.

• Missing or inconsistent invoices.

Proper reconciliation and supporting documents ensure quick resolution and minimal disruption.

Winning With Revenu Québec
At Mackisen CPA Montreal, our filing process minimizes audit risk and maximizes refund efficiency:

1. Pre-Filing Reconciliation – We review sales, expenses, and ITCs/ITRs for accuracy.

2. Automated Filing – We submit FPZ-500-V electronically through Mon Dossier for secure, error-free submission.

3. Documentation Integration – All invoices and payment records are stored digitally for audit-readiness.

4. Post-Filing Verification – We confirm receipt, track refunds, and handle any ARQ correspondence.

5. Penalty Relief – If delays occur, we apply for relief under Tax Administration Act s.94.1 or CRA Policy P-148.

Mackisen Service Hub: Complete GST/QST Filing Support
Our Mackisen Service Hub offers full GST/QST management for Quebec businesses, including:

• FPZ-500-V filing and reconciliation.

• CRA and Revenu Québec integration.

• Quarterly tax reviews and compliance updates.

• Audit defense and penalty relief.

Our bilingual experts CPA auditors, tax lawyers, and accounting specialists trained at McGill, Université de Montréal, and Concordia University bring precision and peace of mind to every filing.

Real Client Example
A Montreal contractor filed three FPZ-500-V returns with errors in Input Tax Refund calculations, triggering an audit. Mackisen CPA recalculated the ITCs/ITRs, filed corrected returns, and represented the client before Revenu Québec. The audit closed with no penalties, and the client received a $14,000 refund.

Why Mackisen
With more than 35 years of combined CPA and legal experience, Mackisen CPA Montreal ensures your FPZ-500-V GST/QST returns are filed accurately, documented completely, and audit-ready every time. We turn compliance into confidence so your taxes are handled right, on time, and with full protection from start to finish.

When you file with Mackisen, every line on your FPZ-500-V tells a story of professionalism, precision, and peace of mind.