How to Register for GST/QST Voluntarily (Before Hitting the $30K Threshold)

Introduction

Many new entrepreneurs in Quebec believe they only need to register for GST (Goods and Services Tax) and QST (Quebec Sales Tax) once their revenues exceed $30,000. While that is the legal threshold for mandatory registration, registering voluntarily before reaching that amount can offer significant financial and strategic advantages — especially if your business has upfront expenses or aims to build early credibility.

This guide from Mackisen CPA Montreal explains when and why to register for GST/QST voluntarily, how to apply, and how voluntary registration can help you claim tax refunds, improve professionalism, and prepare for future growth.

Legal and Regulatory Framework

The right to register voluntarily is established under:

• Excise Tax Act (R.S.C. 1985, c. E-15) — for federal GST.

• Quebec Sales Tax Act (R.S.Q., c. T-0.1) — for provincial QST.

According to these laws, any person or business engaged in commercial activities (taxable supplies of goods or services) may register for GST/QST voluntarily — even if their taxable revenues are below $30,000 in any 12-month period.

Once registered, you are subject to the same responsibilities as larger businesses: charging, collecting, and remitting GST/QST on taxable sales, and filing periodic returns.

Learning Insight

Voluntary registration is not mandatory — but it allows you to recover taxes paid on business expenses (ITCs and ITRs) and build compliance habits early, avoiding future confusion once your business grows.

Step-by-Step: How to Register Voluntarily for GST/QST

Step 1 — Confirm Eligibility

You can register voluntarily if:

• You sell taxable goods or services in Quebec (not exempt activities like residential rent or health services).

• You operate a for-profit business, even part-time.

• You have start-up expenses or plan to make taxable sales soon.

If your business only makes exempt supplies (e.g., financial, medical, or educational), you cannot register.

Step 2 — Understand the Advantages of Voluntary Registration

1. Claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs)
Once registered, you can recover GST and QST paid on:

• Equipment and supplies.

• Software, rent, and utilities.

• Professional fees (legal, accounting, consulting).

• Website, marketing, and start-up costs.

Example:
A small design studio spends $5,000 setting up operations. By registering early, it can recover about $750 in GST/QST through ITCs/ITRs on its first filing.

2. Build Professional Credibility
Displaying GST and QST registration numbers on invoices shows clients that your business operates formally and follows compliance standards.

3. Prepare for Growth
Once registered, you won’t need to rush paperwork the moment you exceed $30,000 in sales. Your system will already be in place.

Step 3 — Prepare Required Information

Before registering, gather:

• Legal name of your business (and operating/trade name if applicable).

• Business address and phone number.

• Description of activities (goods/services offered).

• Projected annual sales and expenses.

• Social Insurance Number (for sole proprietors) or Business Number (BN) if incorporated.

• Bank account details for direct deposit.

If you don’t yet have a Business Number, Revenu Québec can issue one automatically during registration.

Step 4 — Submit Your Application

For QST (Quebec Sales Tax)

1. Go to revenuquebec.ca → Mon dossier pour les entreprises.

2. Select “Register a new business” and complete Form LM-1-V – Application for Registration.

3. Indicate that you are registering voluntarily (below $30,000 threshold).

4. Include your expected start date of taxable activity.

For GST (Federal Tax)

• The same LM-1-V form automatically registers you for GST with the CRA (no separate federal form needed for Quebec).

Revenu Québec administers both GST and QST for most Quebec businesses — you’ll receive both registration numbers:

• GST No. (RT0001)

• QST No. (TQ0001)

Step 5 — Start Charging and Collecting GST/QST

Once your registration is approved:

• Add GST (5%) and QST (9.975%) to taxable invoices.

• Display both tax numbers clearly.

• Track all tax collected and paid in your accounting software.

Example:
Service fee: $200
GST (5%): $10
QST (9.975% × $210): $20.95
Total: $230.95

Learning Insight

You must start charging GST/QST from the effective registration date. Collecting taxes before registration is illegal.

Step 6 — File and Remit Regularly

Filing frequency depends on your expected annual sales:

• Less than $1.5M → Annual (you can request quarterly).

• $1.5M – $6M → Quarterly.

• Over $6M → Monthly.

File your returns through Mon dossier pour les entreprises and pay any amounts due by the deadline.

Even if you have no sales during the period, you must still file a nil return.

Common Errors to Avoid

• Registering without understanding the reporting obligations.

• Collecting GST/QST before registration is approved.

• Forgetting to file nil returns while inactive.

• Registering for exempt activities (e.g., residential rent, medical).

• Not keeping six years of supporting documents for ITCs/ITRs.

Learning Insight

Once registered, you’re treated as a full taxpayer — missing filings or payments can trigger penalties, even if you had no sales. Always keep your account current.

Real Quebec Business Example

A Montreal freelance videographer registered voluntarily after investing $10,000 in new camera equipment. Their first QST/GST filing yielded over $1,400 in recovered taxes.

Another self-employed consultant delayed registration until reaching $32,000 in sales, losing nearly $800 in unclaimed ITCs from earlier expenses.

Lesson: Early registration often results in real savings and better compliance.

Compliance Checklist

Do

• Register voluntarily before the $30,000 threshold if you incur expenses.

• Keep detailed records of all purchases and receipts.

• Charge GST/QST only after registration approval.

• File nil returns if you have no sales.

• Maintain six years of documentation.

Don’t

• Register for exempt activities.

• Delay registration if you plan to scale soon.

• Mix personal and business expenses in your tax records.

• Forget to reconcile taxes collected vs paid.

Mackisen Strategy

At Mackisen CPA Montreal, we help start-ups and self-employed professionals register voluntarily and take advantage of every available tax refund. Our team:

1. Prepares and submits the LM-1-V registration.

2. Sets up your Mon dossier and GST/QST systems.

3. Reviews expenses to maximize recoverable credits.

4. Provides ongoing support for filing and compliance.

With Mackisen CPA, voluntary registration becomes a strategic step — not just paperwork.

Why Mackisen

With over 35 years of combined CPA expertise, Mackisen CPA Montreal helps new entrepreneurs, freelancers, and start-ups launch with full financial and tax readiness. We simplify registration, compliance, and refund optimization — so your business begins strong and stays compliant.