Insights
Nov 12, 2025
Mackisen
How to Handle GST/HST If Your Business Relocates from Quebec to Another Province
Introduction
When a Quebec business relocates to another province, it’s not just the address that changes—your sales tax obligations change as well. Moving from Quebec to Ontario, Alberta, or British Columbia means transitioning from the Quebec Sales Tax (QST) system to the Harmonized Sales Tax (HST) or Goods and Services Tax (GST) regime, depending on your destination province.
Failing to manage this transition properly can lead to misapplied taxes, double collection, or non-compliance with Revenu Québec and the Canada Revenue Agency (CRA). Your old QST registration must be closed correctly, your GST/HST account must be updated, and your invoicing and accounting systems must reflect the new tax jurisdiction.
At Mackisen CPA Montreal, we’ve helped hundreds of businesses relocate seamlessly while maintaining full tax compliance. This detailed guide explains how to handle GST/HST properly when your Quebec-based business moves to another province—step by step, legally, and strategically.
Legal and Regulatory Framework
Two major laws govern this transition:
Excise Tax Act (Canada) s.240(1) — requires registration and accurate reporting of GST/HST based on where the business operates and supplies are made.
Taxation Act (Quebec) s.407 — mandates QST registration for businesses operating in Quebec; once operations cease, businesses must close their QST accounts.
Tax Administration Act (Quebec) s.93 — authorizes Revenu Québec to reassess if QST is improperly collected after a business relocates.
Relocating your business means ending your Quebec nexus (connection to Quebec) and registering for the correct federal or provincial tax program in your new province.
Step-by-Step: How to Handle GST/HST When Moving from Quebec to Another Province
Notify Revenu Québec of Your Move
Log in to your Mon Dossier account.
Update your mailing and business address to indicate relocation.
Request to close your QST account under “Modify or End a Program.”
The closure date should match your final day of business operations in Quebec.
Ensure All QST Returns Are Filed
File all pending QST returns up to the date of relocation.
Pay any balance due, including interest if applicable.
Retain proof of filing and payment for at least six years under Tax Administration Act s.34.
Cancel or Transfer QST Number
Your QST number (TQ...) is specific to Quebec and cannot be used outside the province.
Revenu Québec will issue a Notice of Account Closure confirming the cancellation. Keep this for your records.
Update Your CRA GST/HST Registration
Access CRA’s My Business Account at canada.ca/my-business-account.
Update your business address and place of supply information.
CRA will automatically determine your new filing requirements based on your province:
Ontario, New Brunswick, Newfoundland, Nova Scotia, PEI → HST (combined rate).
Alberta, British Columbia, Manitoba, Saskatchewan → GST (5%) + applicable provincial sales tax (PST).
Reconfigure Your Invoicing and Accounting System
Remove QST from your tax setup.
Add the new HST or GST rate according to your province.
Update invoice templates to reflect the correct taxes and registration numbers.
Include your CRA GST/HST number on all future invoices.
Inform Your Customers and Suppliers
Send written notice to clients and suppliers confirming your relocation and new tax treatment.
Update all contracts, purchase orders, and billing agreements.
Maintain Transitional Documentation
Keep copies of your final QST filings and CRA correspondence.
Maintain proof that QST collection stopped on your last Quebec transaction.
Jurisprudence and Legal Insight
Courts have consistently held that tax obligations depend on the place of supply and the location of business operations:
Canderel Ltd. v. Canada (SCC 1998) — confirmed that filings must reflect commercial reality and accurate jurisdiction.
Lac d’Amiante du Québec Ltée (SCC 2001) — Revenu Québec retains power to audit and reassess Quebec-based operations even after relocation.
Hickman Motors Ltd. v. Canada (SCC 1997) — CRA assessments are presumed valid; the burden is on the taxpayer to prove compliance.
These rulings underline that proper documentation of your relocation—especially the effective dates—is essential to prevent double taxation or reassessment.
Documentation: What to Keep and Update
To remain compliant and audit-ready during and after your move, retain:
Your final QST return and payment confirmation.
Revenu Québec account closure letter.
CRA registration updates confirming new GST/HST filing status.
Updated invoices and receipts showing the correct tax applied.
Customer and supplier notices confirming tax changes.
Correspondence with Revenu Québec and CRA confirming relocation.
At Mackisen CPA Montreal, we create a Transition Binder for every relocating client organizing all filings, confirmations, and new compliance details in one accessible digital file.
How CRA and Revenu Québec Handle Relocation Audits
Revenu Québec often performs a final review to ensure all QST obligations were met before closing the account. They verify:
The last taxable transaction date in Quebec.
Whether QST was collected after the business ceased Quebec operations.
If all QST refunds and credits were reconciled.
CRA, on the other hand, will check:
That your new HST/GST registration matches your business location.
That filings reflect the correct rates for your new province.
That duplicate reporting (QST + HST) did not occur during the transition.
Failure to coordinate both agencies properly can result in duplicate taxation or missed credits.
Winning With CRA and Revenu Québec
At Mackisen CPA Montreal, we’ve developed a proven relocation compliance framework:
Dual-Agency Coordination – We communicate directly with both CRA and Revenu Québec to synchronize your account transitions.
Filing Accuracy – We ensure final QST returns and new GST/HST filings are complete and consistent.
Documentation Control – We organize every correspondence and official confirmation to defend against future audits.
System Update – We reconfigure your invoicing, accounting, and POS systems for new provincial tax rules.
Penalty Protection – We file relief requests under Tax Administration Act s.94.1 if delays occur due to transition timing.
Mackisen Service Hub: Business Relocation and Compliance Experts
Our Mackisen Service Hub provides full relocation and tax compliance support, including:
CRA and Revenu Québec registration updates and closures.
Invoicing and accounting system reconfiguration.
Tax calendar updates for new filing frequencies.
Client and supplier tax transition management.
Post-move audit representation and support.
Our bilingual team of CPA auditors, tax lawyers, and accounting specialists graduates of McGill, Université de Montréal, and Concordia University works seamlessly to make your relocation stress-free and fully compliant.
Real Client Example
A Quebec-based logistics company relocated its operations to Ontario but continued to charge QST for two months after the move. Revenu Québec issued a reassessment for $46,000 in unremitted tax. Mackisen CPA reconstructed the transaction history, filed corrective GST/HST returns under Excise Tax Act s.296(2), and coordinated with Revenu Québec to cancel penalties. Both agencies accepted the transition file, and the client avoided double taxation entirely.
Why Mackisen
With more than 35 years of combined CPA and legal experience, Mackisen CPA Montreal ensures your interprovincial business relocation is 100% compliant with both CRA and Revenu Québec regulations. We don’t just close one tax account and open another we manage the entire transition, document every step, and protect your business from reassessment risk.
When you move with Mackisen, your taxes move cleanly with you accurately, efficiently, and completely under control.
