Insights
Nov 12, 2025
Mackisen
How to Handle GST/QST for Freelancers and Consultants in Quebec
Introduction
Freelancers and consultants in Quebec—whether working in accounting, IT, design, marketing, coaching, or legal services—must understand how to properly handle GST (Goods and Services Tax) and QST (Quebec Sales Tax). Many self-employed professionals make the mistake of thinking sales taxes apply only to large corporations, but that’s a costly misunderstanding.
If your total revenues exceed $30,000 in any 12-month period, you are legally required to register for both GST and QST, collect these taxes from clients, and remit them to the government. Failure to do so can result in retroactive assessments, penalties, and interest under the Tax Administration Act.
At Mackisen CPA Montreal, we help freelancers and consultants stay compliant while maximizing deductions and credits. With over 35 years of combined CPA and legal experience, our team provides the tax knowledge and bookkeeping discipline freelancers need to run their businesses like professionals.
Legal and Regulatory Framework
Two major laws govern sales taxes in Quebec:
Excise Tax Act (Canada) – governs GST registration and remittance obligations under section 240(1).
Taxation Act (Quebec) and Tax Administration Act (Quebec) – govern QST registration, collection, and audits under sections 407 and 93.
Under these laws, freelancers who earn more than $30,000 in global taxable revenues (before expenses) must register for both taxes. Those below the threshold may still register voluntarily to claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) for GST/QST paid on business expenses.
Failing to register when required can trigger penalties under Tax Administration Act s. 59 and interest under Excise Tax Act s. 280(1).
When Freelancers Must Register
You must register for GST/QST if:
You earn over $30,000 in gross income from self-employment or consulting.
You provide taxable services (most professional services are taxable).
You operate as a sole proprietor, incorporated consultant, or partnership.
If your income is under $30,000, you’re considered a small supplier, but voluntary registration is often beneficial because it allows you to recover taxes on:
Office equipment and software.
Professional memberships and insurance.
Training, advertising, and subcontractor expenses.
Rent and utilities for your home office.
Step-by-Step: How Freelancers Handle GST/QST in Quebec
Register for Tax Numbers
Apply for a GST number through CRA’s Business Registration Online (BRO) portal.
Apply for a QST number via Revenu Québec’s Mon Dossier.
You’ll receive two registration numbers: one starting with RT (GST) and one starting with TQ (QST).
Charge GST and QST Correctly
Apply 5 % GST and 9.975 % QST (14.975 % total) on invoices to Quebec clients.
List both taxes separately on each invoice with your registration numbers.
Collect and Track Taxes
Keep the GST/QST you collect separate from your business income.
Deposit it in a dedicated tax account so funds are available when it’s time to remit.
Remit and File on Schedule
File monthly, quarterly, or annually depending on your revenue.
Pay on or before the due date to avoid penalties or interest.
Claim Input Tax Credits and Refunds
Deduct the GST/QST you pay on business purchases from the tax you collect.
Maintain receipts and invoices showing the supplier’s registration numbers.
Jurisprudence and Professional Lessons
Court decisions highlight the importance of compliance and recordkeeping for independent professionals:
Canderel Ltd. v. Canada (SCC 1998) – Income and tax filings must reflect commercial reality; incomplete records are grounds for reassessment.
Hickman Motors Ltd. v. Canada (SCC 1997) – CRA assessments are presumed correct until proven otherwise by the taxpayer.
Lac d’Amiante du Québec Ltée (SCC 2001) – Revenu Québec has full authority to inspect records and reassess if information is missing.
Freelancers who delay registration or fail to remit taxes often learn these principles the hard way—through retroactive assessments and daily compounding interest.
Documentation: Staying Organized and Audit-Ready
Strong documentation is the freelancer’s greatest defense. Keep:
Copies of every invoice issued, showing GST and QST separately.
Receipts for every business expense, with proof of payment.
Bank statements reconciling income and tax collected.
Accounting reports showing taxes payable vs. refundable.
Revenu Québec auditors look for patterns of consistency. If your records are complete, organized, and professional, they’ll view your file as low-risk.
At Mackisen CPA Montreal, our bookkeeping experts help freelancers implement automated accounting systems (QuickBooks, Xero, Sage) to track taxes effortlessly and prepare for year-end filings or audits.
Common Mistakes Freelancers Make
Collecting taxes before registration approval.
Forgetting to charge QST to Quebec clients.
Failing to keep receipts or invoices showing GST/QST paid.
Using personal accounts for tax collection.
Filing late or not filing nil returns.
These mistakes often lead to penalties under Tax Administration Act s. 94.1 or denial of ITCs/ITRs.
How CRA and Revenu Québec Audit Freelancers
Freelancers are audited more often than incorporated firms because they typically work alone and handle their own books. The agencies use income comparisons and bank data to identify discrepancies.
Information Request – You may receive a verification letter asking for invoices or receipts.
Desk Audit – Revenu Québec cross-checks income reported on your GST/QST returns with your personal and business tax filings.
Reassessment – If inconsistencies remain, an official reassessment is issued for unpaid taxes, plus penalties and interest.
Our Mackisen CPA tax defense team includes experienced auditors and tax lawyers who can respond to these requests, reconstruct documentation, and negotiate fair settlements.
Winning With Revenu Québec and CRA
Winning doesn’t come from confrontation—it comes from preparation, professionalism, and precision. With over three decades of experience, Mackisen CPA Montreal has helped thousands of freelancers and consultants register correctly, recover denied credits, and resolve reassessments.
Our Proven Steps for Freelancer Success
Registration and Compliance Review – We ensure your GST/QST setup and invoices meet every CRA and Revenu Québec standard.
Documentation Audit – We verify that all receipts and expense claims are valid for ITCs and ITRs.
Filing and Remittance System – We implement quarterly or annual filing calendars and automate reminders.
Audit Defense and Settlement – Our tax lawyers represent you directly with both agencies.
Financial Growth Plan – We show you how to price your services, include taxes transparently, and manage cash flow efficiently.
Mackisen Service Hub: Specialized Help for Freelancers
Our Mackisen Service Hub in Montreal offers comprehensive support for self-employed professionals. Our multidisciplinary team includes:
CPA Auditors with expertise in small business and independent contractor audits.
Tax Lawyers skilled in negotiations with CRA and Revenu Québec.
Bookkeeping Specialists to organize your tax and accounting records.
Business Advisors who help structure your freelance business for growth.
Our professionals—graduates of McGill University, Université de Montréal, and Concordia University—bring decades of experience to every freelancer we serve.
Real Client Example
A Montreal marketing consultant earned $70,000 in 18 months but never registered for GST/QST. Revenu Québec reassessed her $9,200 for unpaid taxes plus interest. Mackisen CPA registered her retroactively, reconstructed all invoices, and filed an objection under Tax Administration Act s. 93.1. The penalties were reduced by 80%, and she recovered $2,400 in Input Tax Refunds.
Why Mackisen
With over 35 years of combined CPA and legal experience, Mackisen CPA Montreal is the trusted accounting partner for freelancers and consultants across Quebec. We ensure every self-employed professional collects, reports, and remits GST/QST correctly—while keeping more of what they earn.
Working with Mackisen means having a full team of accountants, auditors, and tax lawyers who protect your independence, defend your compliance, and support your success.
