How to Switch from Annual to Quarterly GST/QST Filing Frequency

Introduction

As your business grows, so do your reporting obligations. Many Quebec entrepreneurs begin by filing annual GST/QST returns, but once sales increase, switching to quarterly filing can improve cash flow, reduce year-end stress, and help you stay aligned with Revenu Québec and CRA requirements.

This guide from Mackisen CPA Montreal explains when and how to switch from annual to quarterly GST/QST filing frequency, what benefits this change offers, and how to complete the process smoothly through Mon dossier pour les entreprises and CRA’s My Business Account.

Legal and Regulatory Framework

GST and QST reporting frequencies are governed by:

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

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

Revenu Québec and the CRA assign your filing frequency based on annual taxable sales, but you can request a change if your business circumstances evolve.

Why Switch to Quarterly Filing

1. Improve Cash Flow

Quarterly filing allows you to claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) more frequently, helping you recover GST/QST paid on purchases faster.

2. Reduce Year-End Pressure

Smaller, regular filings make reconciliation easier and prevent last-minute surprises during your annual close.

3. Stay in Line with Revenue Growth

If your revenues exceed $1.5 million, you are required by law to switch from annual to quarterly. Failing to do so can result in late filings or reassessments.

Learning Insight

Many small businesses voluntarily switch before hitting the $1.5M mark to smooth cash flow and reduce administrative stress. Filing quarterly gives you more predictable financial control.

Step-by-Step: How to Switch from Annual to Quarterly Filing

Step 1 — Review Your Current Revenue

Confirm your total worldwide taxable revenues (including associated entities) over the last four consecutive quarters.
If you’ve exceeded $1.5 million, the switch is mandatory.

Step 2 — Choose Your Preferred Start Date

You can change your frequency:

• At the start of your next fiscal year, or

• At the beginning of your next reporting period (with approval from Revenu Québec/CRA).

Plan the switch at a period boundary to avoid overlap or confusion.

Step 3 — Contact Revenu Québec and CRA

For QST:

1. Log in to revenuquebec.ca → Mon dossier pour les entreprises.

2. Go to “Consumption Taxes → Change filing frequency.”

3. Choose “Quarterly” as your new frequency.

4. Confirm the effective date and submit your request electronically.

For GST:

1. Log in to canada.ca/my-business-account.

2. Select your GST/HST (RT) account.

3. Click “Manage account → Change filing frequency.”

4. Select “Quarterly” and confirm the change.

If you prefer, your CPA can submit written requests to both agencies on your behalf.

Learning Insight

Both CRA and Revenu Québec usually approve voluntary frequency changes at the start of the next reporting period to maintain alignment between GST and QST.

Step 4 — Adjust Your Accounting Software

Update your accounting settings in QuickBooks, Xero, Sage, or Wave:

• Change tax filing frequency to Quarterly.

• Adjust reporting periods and reminders.

• Reconcile GST/QST control accounts before your first new filing period.

Step 5 — Confirm New Due Dates

Quarterly returns are due one month after each quarter-end.

Set calendar reminders in advance to avoid penalties.

Common Errors to Avoid

• Forgetting to update both CRA and Revenu Québec.

• Overlapping old and new periods.

• Continuing to file annually after approval.

• Missing the first new quarterly deadline.

• Failing to reconcile accounts before switching.

Learning Insight

Your first quarterly filing often covers a short transition period. CRA and Revenu Québec will clarify the exact start date on your confirmation notice — double-check before filing.

Real Quebec Business Example

A Montreal design firm exceeded $1.6M in annual sales but continued filing annually. Revenu Québec reclassified them to quarterly retroactively, creating three late returns and over $2,500 in penalties.

Another company voluntarily switched early to quarterly filing, improved cash flow by claiming input credits every three months, and avoided surprises at year-end.

Lesson: switch proactively — not reactively.

Compliance Checklist

Do

• Monitor annual revenues and file frequency eligibility.

• Request the change through both CRA and Revenu Québec.

• Update accounting software and internal calendars.

• File your first quarterly return on time.

• Keep written confirmation of frequency change.

Don’t

• Assume CRA and Revenu Québec automatically adjust your filing frequency.

• File under the wrong schedule during the transition.

• Forget to remit taxes during interim months.

• Ignore correspondence confirming your new frequency.

Mackisen Strategy

At Mackisen CPA Montreal, we help growing businesses manage GST/QST transitions seamlessly. Our team:

1. Reviews your annual revenues and tax obligations.

2. Prepares and submits formal frequency change requests.

3. Synchronizes CRA and Revenu Québec filing calendars.

4. Adjusts your bookkeeping software to reflect new schedules.

We ensure your filings remain accurate, timely, and compliant through every stage of business growth.

Why Mackisen

With over 35 years of combined CPA expertise, Mackisen CPA Montreal helps Quebec businesses scale efficiently while staying fully compliant with CRA and Revenu Québec. From registration to quarterly filings and audits, we manage every tax detail with precision and transparency.