Registering for QST as a non-resident selling into Quebec has become a legal requirement for many out-of-province and foreign businesses. Quebec introduced strict remote seller rules to ensure that consumers pay appropriate QST on goods, services, and digital products purchased from suppliers outside the province. Whether your business is located elsewhere in Canada, the United States, Europe, Asia, or operates with no physical presence at all, you may still be required to register for QST under the specified registration system. Failure to register can lead to penalties, enforced back-dated tax collection, and interruption of your ecommerce or service operations. This guide explains how non-resident businesses must evaluate their tax obligations, when they must register, and how to comply with QST rules when selling into Quebec.

Non-resident businesses often assume that tax obligations depend solely on physical presence. Quebec law, however, focuses on where customers are located and where the product or service is consumed. If you sell digital services, SaaS subscriptions, online courses, software licenses, goods shipped into Quebec, or taxable services consumed in Quebec, you may have a QST obligation even if you have no office, employees, or warehouse in the province.

LEGAL AND REGULATORY FRAMEWORK

Non-resident QST requirements are governed by the Quebec Taxation Act and the remote seller rules introduced in 2019. These rules require businesses outside Quebec to register and collect QST if they meet the following conditions. They supply taxable goods or services to customers located in Quebec. They exceed thirty thousand dollars in taxable supplies over a twelve-month period. They have no physical presence in Quebec, but they sell through ecommerce, digital platforms, or remote delivery methods.

There are two types of QST registration systems for non-residents. Canadian non-residents use the simplified QST registration system if they are not considered to be carrying on business in Quebec. Foreign non-residents, including US and international companies, must also use the specified registration system. These systems require collection of QST but do not allow input tax refund claims. Businesses considered to be carrying on business in Quebec must use the regular QST system, which allows full input tax refunds. Determining the correct system is an essential part of compliance.

The registration process requires business identification, worldwide revenue information, the nature of supplies provided to Quebec customers, and confirmation of tax collection systems. Once registered, the business must charge QST on all taxable supplies, remit QST to Revenu Québec, and maintain supporting documentation for at least six years.

KEY COURT DECISIONS

Court decisions across Canada and internationally affirm that governments may require non-resident sellers to collect local consumption taxes when customers are located in their jurisdiction. In digital commerce cases involving streaming services, online platforms, and SaaS providers, judges emphasized that physical presence is no longer required to trigger tax obligations.

In Quebec-specific cases, courts upheld Revenu Québec’s right to require non-resident registration even when the supplier had minimal connection to the province. The courts ruled that access to Quebec’s consumer market creates sufficient nexus for QST collection obligations. These decisions reinforce the responsibility of non-resident businesses to analyze their obligations and register promptly.

WHY CRA AND REVENU QUÉBEC TARGET THESE ISSUES

Revenu Québec monitors non-resident suppliers closely because cross-border ecommerce and digital transactions represent one of the largest growing sectors of the economy. When non-residents fail to register, Quebec loses significant sales tax revenue. Industries frequently targeted include SaaS providers, subscription services, US ecommerce sellers, consultants, online educators, drop-shippers, wholesalers, and foreign retailers shipping goods into Quebec.

Automatic audit triggers occur when Quebec billing addresses appear without corresponding QST filings, when ecommerce platforms report high sales into Quebec, or when large volumes of goods cross the border. Refund reviews also uncover non-resident suppliers operating without registration. Quebec enforces compliance aggressively to ensure fairness for Quebec-based businesses that must charge QST.

MACKISEN STRATEGY

Mackisen CPA helps non-resident businesses determine whether they must register for QST, identify the correct registration system, and complete the entire setup process with Revenu Québec. We analyze your sales, customer location, transaction flow, industry type, and total taxable supplies to determine whether remote seller rules apply. Our firm prepares and submits registration forms, obtains your QST number, and ensures your invoicing system applies the correct tax rate.

We also guide non-resident businesses through implementing tax codes, updating ecommerce platforms such as Shopify, WooCommerce, Amazon, or Stripe, and ensuring proper collection of QST on every transaction. For businesses already selling into Quebec without registration, we create corrective strategies through voluntary compliance programs to minimize penalties. Mackisen also monitors filing obligations, prepares FPZ-500-V returns when applicable, and ensures you remain audit-ready.

REAL CLIENT EXPERIENCE

An Ontario-based digital learning platform sold courses to Quebec residents for years without registering for QST. Revenu Québec contacted them about remote seller obligations. Mackisen reviewed their sales, determined they exceeded the registration threshold, registered them for QST, updated their online platform, and negotiated a relief plan to minimize penalties.

A US ecommerce retailer shipping goods to Montreal customers through a fulfillment center assumed they did not need to charge QST. After receiving an information request from Revenu Québec, they contacted Mackisen. We helped them register under the specified system, updated their invoicing, and ensured compliance across all shipping channels.

A European SaaS provider offered monthly software subscriptions to Quebec businesses but did not charge QST. Mackisen analyzed their service flow, confirmed QST obligations, registered them, and integrated tax automation into their billing platform. Their compliance review resolved quickly with no penalties.

COMMON QUESTIONS

Do I need to register for QST if I am located outside Quebec
Yes, if you exceed the thirty-thousand-dollar threshold and supply taxable goods or services to Quebec customers.

Do foreign companies need to charge QST
Yes. Non-resident foreign suppliers must register under the specified QST system unless an exemption applies.

Do I need to charge GST as well
Typically yes for Canadian non-residents. Foreign businesses may or may not need GST registration depending on their Canadian activity.

Can I claim input tax refunds as a non-resident
Not under the specified registration system. Only regular QST registrants can claim input tax refunds.

What platforms require QST collection
All ecommerce sites, subscription services, and online platforms providing taxable supplies to Quebec customers.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Canadian and international businesses stay compliant while accessing the Quebec market. Whether you are a digital service provider, ecommerce retailer, or out-of-province consultant, our expert team ensures precision, transparency, and full QST compliance. We handle your registration, system updates, invoicing, and remittances so you can operate confidently in Quebec.