How to Handle GST/QST for Freelancers and Consultants in Quebec — Montreal CPA Firm

Freelancers and consultants make up one of the largest and fastest-growing business segments in Quebec — marketing consultants, IT specialists, designers, translators, coaches, copywriters, business advisors, personal trainers, virtual assistants, and many more. Despite this growth, most freelancers are confused about when they need to charge GST and QST, how to file returns, and what expenses they can claim. Many believe GST/QST rules don’t apply because they are “self-employed,” earning “side income,” or not incorporated. These assumptions create massive financial risk, including retroactive tax assessments, penalties, denied refunds, and even audits. This guide explains everything freelancers and consultants must know about GST/QST using Mackisen’s proven compliance system.

Why GST/QST Rules Apply to Freelancers
Whether you operate part-time or full-time, if your activity is a commercial business and provides taxable services, GST/QST rules apply. The law does not distinguish between a freelancer and a corporation. If you pass the $30,000 threshold in any 12-month period (rolling, not calendar year), you must register for both GST and QST. Many freelancers cross the threshold without realizing it because they track income irregularly or use multiple payment platforms such as Stripe, PayPal, Interac e-Transfers, and direct deposits.

Legal and Regulatory Framework
GST rules fall under the Excise Tax Act.
QST rules fall under the Quebec Tax Administration Act.
Registration is mandatory when revenues exceed $30,000 in any consecutive 12-month period.
Hickman Motors (1997) confirms taxpayers must support their filings with documentation.
Canderel (1998) requires that all filings reflect commercial reality — including “side-income.”
Lac d’Amiante (2001) confirms Revenue Québec may reassess if GST/QST is not collected properly.

What Happens When Freelancers Ignore GST/QST
Imagine earning $45,000 doing consulting and coaching, paid through e-transfer and PayPal. You never registered for GST/QST because no one told you the threshold applies to freelancers too. Revenue Québec audits your income tax return, matches bank deposits to invoices, and determines you should have charged QST for 18 months. They assess thousands in QST you never collected from clients — and you must pay it out of pocket. Your income tax refund is frozen. Your next filings are flagged. You are now in a compliance nightmare simply because you misunderstood the rules.

Learning Section: When Freelancers Must Register
You must register for GST/QST if:
Your worldwide taxable supplies exceed $30,000 in any rolling 12-month period
You exceed $30,000 in a single month
You operate a taxable business activity
Even if below $30,000, voluntary registration is recommended to claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs).

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How Freelancers Must Charge GST/QST
For Quebec clients:
Charge 5% GST + 9.975% QST (QST on GST-inclusive amount)
For Ontario/Atlantic clients:
Charge HST (13–15%), depending on province
For Western Canada clients:
Charge GST only
For U.S. and international clients:
Often 0%, if services are provided to non-residents for use outside Canada
(Documentation required)
Your invoicing template must show GST/QST separately with your tax numbers.

What Expenses Freelancers Can Claim (ITCs/ITRs)
Laptop, phone, internet
Software (Adobe, Canva, QuickBooks, Notion, etc.)
Office supplies
Rent or home-office expenses
Professional fees (lawyer, CPA, coach)
Marketing and ads
Training and certification
Travel (meals at 50%)
Equipment
As long as the expense is used to earn taxable income and documentation exists, you can recover GST/QST.

Documentation Section
Invoices with GST/QST numbers
Proof of payment (bank statements, PayPal, Stripe, Interac)
Contracts or email agreements
Time logs or work summaries
Expense receipts
Home-office calculation worksheets
Reconciliation of GST/QST payable vs receivable
All documents must be kept for six years.

Common Mistakes Made by Freelancers
Not registering after hitting the $30,000 threshold
Charging GST but forgetting QST
Using incorrect tax settings in Stripe/PayPal/Shopify
Mixing business and personal expenses
Not keeping proof of payment
Not prorating expenses used partly for personal reasons
Claiming ITCs/ITRs without supplier tax numbers
Late filing or failure to file — leading to penalties
Incorrectly treating U.S. clients as taxable or non-taxable
Failing to reconcile accounts before filing returns

Winning With Revenue Québec and Canada
Freelancers often face GST/QST reviews because their bookkeeping is done irregularly. Mackisen builds a stable compliance system, sets up invoicing templates, configures accounting software, tracks thresholds monthly, reconciles tax accounts, and prepares audit-proof filings. If CRA or RQ requests documents, we prepare the complete support package and communicate on your behalf.

Mackisen Service Hub
We provide:
GST/QST registration for freelancers
Monthly/quarterly reconciliation
Invoicing template design
Threshold monitoring
Expense categorization and tax coding
Audit-defense documentation
GST/QST filing for consultants
Refund claim preparation
Full financial compliance setup

Why Mackisen
With 35+ years of CPA experience, Mackisen CPA Montreal ensures freelancers charge the right tax, recover every dollar of GST/QST they are entitled to, and stay fully compliant with CRA and RQ rules. We help you operate professionally, avoid penalties, and protect your income.