How to Issue Correct Receipts Showing GST/QST to Customers — A Montreal CPA Firm

Issuing receipts with correct GST and QST information is not optional—it's a legal obligation under Quebec tax law. Incorrect receipts are one of the most common triggers for Revenu Québec audits, refund freezes, denied input tax credits, and trust-fund investigations. The moment your business issues a receipt that does not comply with GST/QST rules, you expose yourself to penalties and create a permanent compliance risk.
Most businesses underestimate the seriousness of receipt errors. They believe POS systems automatically calculate the taxes correctly, or that handwritten receipts are acceptable. But if your receipts do not contain the exact required elements, Revenu Québec can reject input tax credits claimed by your clients, reassess your GST/QST filings, or conclude that your business is mishandling trust money.
As a Montreal CPA firm with more than 35 years of combined professional experience, Mackisen CPA Montréal created this comprehensive guide to help you issue legally compliant, audit-ready receipts every time.

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Why This Matters

Incorrect receipts are one of the highest-risk compliance issues for Quebec businesses. Errors include
• missing GST/QST registration numbers
• incorrect tax amounts
• receipts showing tax-included pricing without breakdown
• missing descriptions of goods and services
• incorrect business names or numbering
• incomplete supplier information
• POS systems programmed incorrectly
• failure to provide receipts for cash sales
• handwritten receipts missing legal details
• issuing invoices that do not match POS totals
These mistakes result in
• denied ITCs/ITRs
• refund freezes
• GST/QST reassessments
• trust-fund reviews
• penalties and interest
• expanded multi-year audits
Revenu Québec aggressively audits businesses with receipt defects because they indicate potential underground activity or tax manipulation.

Legal and Regulatory Framework

Receipts must comply with
• the Excise Tax Act
• the Quebec Sales Tax Act
• the Tax Administration Act
• invoice and documentation requirements issued by Revenu Québec
• consumer-protection requirements for displayed pricing
A receipt must show taxable supplies clearly, with precise tax breakdowns.
Courts have consistently upheld strict receipt requirements.
Aikman emphasized that incomplete invoices invalidate credit claims.
Lac d’Amiante confirmed missing documentation leads to reassessment.
Prokofiew ruled that taxpayers must prove entitlement to every input credit.
Global Cash Access validated the government’s ability to reconstruct transactions when poor receipts are issued.
A single missing receipt element can invalidate the entire transaction.

GST/QST Are Trust Funds — Incorrect Receipts Create Dangerous Liability

When you charge GST or QST, you collect trust money on behalf of the government. Incorrect receipts make it impossible to verify whether you collected the correct amount of tax.
This creates suspicion of trust-fund misuse, leading to
• refund freezes
• trust-fund investigations
• audit expansion into multiple years
• garnishments and liens
• forced repayment agreements
• director personal liability
Issuing proper receipts is a legal shield that protects your business.

Mackisen’s Complete Guide: How to Issue Correct GST/QST Receipts

1. Include Your Full Legal Business Name on the Receipt

The name on your receipt must match
• your NEQ registration
• your GST/QST registration account
• your corporate documents
If names do not match, auditors assume fraud or misrepresentation.

2. Display Your GST and QST Registration Numbers Clearly

You must include
• GST/HST registration number
• QST registration number
These numbers must be accurate.
If they are missing or incorrect, customers and suppliers cannot claim ITCs/ITRs, and Revenu Québec may reject your returns.

3. Itemize All Goods and Services Separately

Receipts must show
• what was purchased
• quantities
• unit pricing
• taxable vs exempt items
Lumping everything into a single line is a major audit trigger.

4. Display GST and QST Separately and Clearly

Your receipts must show
• GST charged at 5 percent
• QST charged at 9.975 percent
Never merge taxes. Never show tax-included pricing without breakdown (unless you meet strict rules).
A receipt that does not show separate tax amounts is non-compliant.

5. Use Proper Date and Invoice Numbering

You must
• number receipts sequentially
• record the date of the transaction
Missing or duplicate invoice numbers raise red flags.

6. Provide Complete Supplier Information

Your receipt must show
• your full business address
• business phone or email
• your legal name
If customers cannot verify who issued the receipt, Revenu Québec considers it invalid.

7. Ensure POS Tax Codes Are Correct

Your POS system must distinguish between
• taxable items
• exempt items
• zero-rated items
• digital products
• prepared foods
• services
Incorrect POS settings can miscalculate tax on thousands of receipts.

8. Issue Receipts for All Sales, Including Cash

Cash transactions are heavily scrutinized.
Failure to issue receipts for cash sales suggests
• undeclared sales
• tax evasion
• trust-fund misuse
Revenu Québec conducts undercover inspections for this specific issue.

9. Retain Digital Copies of All Receipts

You must store
• original POS receipts
• emailed receipts
• digital invoices
• backup copies
Paper receipts fade, and missing receipts result in disallowed deductions and credits.

10. Ensure Credit Notes Are Issued Correctly

For returns or corrections, you must issue a credit note showing
• original invoice number
• corrected tax amounts
• clear reference to the initial transaction
Incorrect credit notes cause filing and adjustment errors.

Recent Quebec Audit Trends Related to Receipts

Revenu Québec now uses
• POS extraction software
• digital invoice scanning
• receipt verification algorithms
• undercover cash-purchase audits
• bank deposit vs invoice matching
• merchant processor monitoring
Businesses with missing or incorrect receipts are flagged for audit immediately.

Benefits of Issuing Correct GST/QST Receipts

Proper receipts ensure
• compliance with tax law
• eligibility for input credits
• reduced risk of reassessment
• clean audit history
• fewer refund delays
• better financial accuracy
• increased business credibility
Correct receipts protect both you and your customers.

Compliance Requirements for Receipts in Quebec

To remain compliant, you must
• show correct business identity
• itemize goods and services
• display accurate tax amounts
• include all mandatory receipt details
• issue receipts for every sale
• maintain digital storage
Failure to comply increases audit exposure significantly.

Do and Don’t Based on Audit Findings

Do
• test POS tax settings monthly
• keep digital copies of all receipts
• verify registration numbers regularly
• issue receipts for every transaction
• consult your CPA before changing POS systems
Don’t
• rely on handwritten receipts
• merge GST and QST amounts
• use outdated invoice templates
• skip issuing receipts for cash transactions
• ignore missing receipt numbers

Common Receipt Errors That Trigger Audits

Businesses frequently
• omit tax numbers
• miscalculate GST/QST
• fail to provide receipts for cash sales
• show tax-included prices incorrectly
• issue receipts missing addresses
• use POS systems with incorrect tax codes
• lose copies of issued receipts
These errors are immediate red flags for Revenu Québec.

Winning With Revenu Québec

Mackisen provides
• receipt compliance audits
• POS tax configuration
• invoice template redesign
• staff training
• documentation systems
• audit-proof recordkeeping
• GST/QST correction filings
With over 35 years of combined experience, we prepare your business to meet every legal requirement.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montréal ensures your receipts are legally compliant, audit-proof, and aligned with GST/QST law. We protect your business from penalties, trust-fund investigations, and reassessments—so you operate with confidence and security.