Insights
Nov 10, 2025
Mackisen
How to Register for GST and QST in Quebec: Step-by-Step for New Businesses
Introduction
Launching a new business in Quebec brings excitement and opportunity—but also important legal obligations. One of the first steps for any entrepreneur is registering for GST (Goods and Services Tax) and QST (Quebec Sales Tax). These taxes are mandatory once your annual taxable sales exceed $30,000 in any rolling 12-month period.
Many new business owners delay registration, unaware that failing to register on time can trigger penalties, audits, and even personal liability. This guide from Mackisen CPA Montreal explains exactly how to register for GST and QST, what documents you need, how to avoid errors, and how proper registration protects your business reputation and cash flow.
Legal and Regulatory Framework
GST and QST are both value-added taxes administered under:
Excise Tax Act (R.S.C. 1985, c. E-15) — federal GST legislation.
Quebec Sales Tax Act (R.S.Q., c. T-0.1) — provincial QST legislation.
Tax Administration Act (RLRQ, c. A-6.002) — governs collection, registration, and enforcement in Quebec.
In Quebec, Revenu Québec administers both the provincial QST and the federal GST for most businesses (except certain large financial institutions). Once registered, you must collect and remit both taxes on all taxable sales, file regular returns, and maintain proper accounting records for six years.
Failure to register after passing the $30,000 threshold violates both federal and provincial tax laws and may expose you to back-dated assessments and penalties.
Learning Insight
Early registration helps your business claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) on purchases. Delaying registration can mean losing thousands in recoverable tax credits during your start-up phase.
Step-by-Step: How to Register for GST and QST
Step 1 — Determine Eligibility and Timing
You must register when:
Total worldwide taxable revenues exceed $30,000 in any consecutive 12-month period.
You carry on commercial activity in Quebec, even part-time or online.
You are a self-employed individual, corporation, or partnership providing taxable goods or services.
Voluntary registration is also possible before reaching $30,000. This is often beneficial for businesses with significant start-up expenses wishing to recover ITCs and ITRs early.
Step 2 — Prepare Required Information
Before registering, gather:
Legal name of the business or corporation.
Business address and phone number.
Estimated annual revenue.
Business activity and NAICS code.
Bank account information for direct deposits.
Social Insurance Number (sole proprietors) or Business Number (corporations).
If you do not yet have a Business Number (BN) with the CRA, Revenu Québec can coordinate the issuance of one during your QST registration process.
Step 3 — Apply Online via Revenu Québec Portal
Visit Mon dossier pour les entreprises on the Revenu Québec website.
Select “Register a new business” and complete the Application for Registration (Form LM-1-V). This form automatically handles both GST and QST registration for most Quebec businesses.
After submission, you will receive:
GST number (e.g., 123456789 RT0001).
QST number (e.g., 123456789 TQ0001).
These numbers must appear on all invoices and official correspondence.
Step 4 — Confirm Your Filing Frequency
Your filing frequency is based on annual taxable sales:
Less than $1.5 million → Annual filing (optional quarterly or monthly).
$1.5 million to $6 million → Quarterly filing.
More than $6 million → Monthly filing.
Revenu Québec confirms your frequency in your registration letter. Keep it for your CPA or bookkeeper.
Step 5 — Set Up Accounting Software and Records
Activate tax tracking in your accounting system (QuickBooks, Xero, Sage, or equivalent). Ensure GST and QST are separated on all invoices and receipts. Maintain:
Detailed sales and purchase journals.
Copies of invoices, receipts, and contracts.
Proof of payment for remitted taxes.
Step 6 — File and Remit on Time
Once registered, you must file your first GST/QST return by your due date, even if no sales occurred. File electronically through Mon dossier pour les entreprises using Form FPZ-500-V. Always retain confirmation of submission and payment.
Learning Insight
The first filing sets your compliance record. Revenu Québec monitors punctuality from day one. Consistent, timely filings build trust and can prevent future audits.
Why CRA and Revenu Québec Enforce Registration
Both agencies view GST and QST as public trust funds. Collecting taxes without registration or remittance equals misuse of Crown funds. Under sections 222–225 of the Excise Tax Act and articles 24–25 of the Tax Administration Act, both governments may assess unpaid taxes retroactively and charge compounded interest.
Revenu Québec also cross-matches registration data with payroll, income tax, and banking information. Non-registered businesses with visible sales may receive automatic audit notices or forced registration.
Common Errors in GST/QST Registration
Registering late after surpassing $30,000 in revenue.
Using the wrong business name or number on forms.
Forgetting to register for both taxes (only GST or only QST).
Failing to include GST/QST on invoices.
Not updating address or banking details with Revenu Québec.
Learning Insight
Minor administrative errors can cause major operational problems. Incomplete registration may prevent you from charging taxes legally or claiming ITCs/ITRs, leading to lost cash flow.
Real Examples from Quebec Entrepreneurs
A Montreal catering business delayed registration by six months and was assessed over $8,000 in back taxes plus interest. A contractor mistakenly registered only for GST, not QST, leading to dual assessments. An online seller ignored Revenu Québec’s e-commerce rules and had their Shopify payments frozen until compliance was confirmed.
The lesson is clear: register early, register correctly, and consult a CPA before you start invoicing clients.
Mackisen Strategy
Mackisen CPA Montreal assists new businesses by:
Preparing all LM-1-V registration forms.
Coordinating CRA and Revenu Québec numbers.
Setting up Mon dossier pour les entreprises access.
Configuring accounting software for dual-tax tracking.
Training owners to manage ongoing filings.
Our team ensures your registration is compliant, efficient, and audit-ready from day one.
Common Questions
When should I register if I just started?
As soon as your total taxable sales approach $30,000 in any 12-month period—or voluntarily earlier to recover input credits.
Can I register before incorporation?
Yes, sole proprietors and partnerships can register under their personal name and later transfer the account to a corporation.
How long does registration take?
Online applications are usually processed within 10 business days. Paper forms may take 3–4 weeks.
What happens if I miss the $30,000 threshold?
Revenu Québec may back-date your registration and assess tax from the first sale that caused you to exceed the threshold, plus interest.
Can I deregister later?
Yes, if annual taxable sales fall below $30,000 and you meet conditions for small-supplier status.
Compliance Checklist
Do
Register for both GST and QST simultaneously using LM-1-V.
Display both tax numbers on all invoices.
Keep receipts for six years.
Reconcile monthly and confirm tax balances.
Seek CPA review before your first return.
Don’t
Delay registration once near $30,000 sales.
File under the wrong legal entity.
Mix personal and business income.
Assume online sales are exempt.
Ignore Revenu Québec correspondence.
Emerging Trends and Policy Updates
Revenu Québec is expanding registration enforcement through AI data matching with e-commerce platforms, payment processors, and banking institutions. Digital-service providers must now register even if located outside Quebec but selling to Quebec clients. Interest rates on late filings continue to rise quarterly.
Staying informed through a CPA ensures continued compliance with evolving legislation.
Why Mackisen
Mackisen CPA Montreal provides comprehensive registration and compliance support for new businesses. With over 35 years of combined expertise, our bilingual team manages GST/QST registration, filings, audits, and planning. We are located near Complexe Desjardins, minutes from Revenu Québec and CRA offices, allowing for fast coordination and professional representation.
We ensure every client begins their business journey on a compliant foundation—legally protected, financially organized, and audit-ready.
