How to Report GST/QST on E-Commerce Sales (Online Business Guide) — Montreal CPA Firm

E-commerce tax compliance is one of the most misunderstood areas in Quebec business. Shopify, Etsy, Amazon, WooCommerce, PayPal, and Stripe all handle tax differently—and often incorrectly. Many entrepreneurs assume online sales are “tax-free” or that the platform automatically handles taxes. This is wrong and leads to massive reassessments. This guide explains exactly how to report GST/QST on e-commerce sales safely and professionally using Mackisen’s proven compliance framework.

Why E-Commerce Tax Compliance Matters
Revenue Québec aggressively audits online sellers. They compare your reported sales to bank deposits, Stripe payouts, Shopify reports, and payment processor data. If there is any inconsistency, they can freeze refunds, impose penalties, or reassess taxes for years.

Legal and Regulatory Framework
Digital commerce is governed by the Excise Tax Act, Tax Administration Act, and Quebec’s digital supplier rules (2019). Hickman Motors (1997) and Canderel (1998) reinforce accuracy and commercial reality.

What Happens When You Do It Wrong
Imagine running a Shopify store for 18 months, collecting tax incorrectly. One day, RQ audits your Stripe payout reports. They find thousands in missing QST because Shopify was using U.S. tax settings. You owe the difference—plus penalties and interest. Meanwhile, your refund is frozen, your account is flagged, and you must correct every return from the last 18 months. This nightmare is common and preventable.

Learning Section: Where E-Commerce Tax Gets Confusing
Platforms may:
Charge GST but not QST
Calculate QST incorrectly
Fail to calculate HST for certain provinces
Apply U.S. tax rules
Not support zero-rated exports properly
You must control tax settings manually.

SEO Learning: Primary and Secondary Keywords
Primary: e-commerce GST Quebec, QST for Shopify, online business tax Montreal, how to charge tax online Quebec.
Secondary: Shopify tax setup Quebec, QST e-commerce rules, GST digital sales Canada.

How to Report GST/QST on E-Commerce Sales
Step 1: Set tax rules correctly in your platform.
Step 2: Reconcile Shopify/Amazon/Etsy reports monthly.
Step 3: Compare merchant payouts to reported sales.
Step 4: Enter GST/QST collected in your accounting system.
Step 5: Claim ITCs/ITRs on related expenses.
Step 6: File accurately through CRA and RQ portals.

Documentation Section
Order reports
Tax configuration screenshots
Merchant payout statements
Invoices and proof of payment
Shipping documentation
Export records for international sales
These documents must be retained for six years.

Common Mistakes
Assuming platforms calculate tax correctly
Not reconciling payouts to sales
Incorrect QST calculation
Missing documentation
Reporting only bank deposits instead of sales
Failing to track foreign customers properly

Winning With Revenue Québec and Canada
Mackisen configures your platforms, reconciles monthly, identifies tax errors, and prepares corrected filings. We protect you from audit risks common in e-commerce.

Mackisen Service Hub
We manage sales tax for Shopify, Amazon, Etsy, WooCommerce, Square, and custom systems.

Why Mackisen
With deep e-commerce expertise and 35+ years in tax compliance, we ensure your online sales are reported correctly and safely.