Montreal CPA Firm Helps New Business Nail Its First QST Filing

A newly launched Montreal business was nervous about filing its very first QST return. The owner had never dealt with sales tax before and wasn’t confident about how to classify expenses, calculate QST owing, or determine whether certain income was taxable, zero-rated, or exempt. One wrong move could trigger penalties or draw unnecessary attention from Revenu Québec.

With Mackisen’s help, the business completed its first filing accurately, on time, and with no adjustments setting the tone for clean compliance from day one.

The Situation: First-Time Filing Anxiety

The business owner didn’t know:
• how to calculate QST collected
• how to tally eligible ITRs
• what documents were required
• how to reconcile deposits
• how to interpret QST rules for mixed supplies
• how to enter amounts in the FPZ-500-V

They also worried about:
• accidentally claiming the wrong expenses
• missing the filing deadline
• triggering a refund verification
• setting up the accounting software incorrectly

The fear of making a mistake was real.

Step 1 — Setting Up the Accounting System Properly

Mackisen began by configuring:
• the correct QST rate (9.975%)
• proper GST/QST tax codes
• customer and product tax profiles
• automated calculation rules
• separate accounts for QST collected and ITRs

This ensured that each transaction flowed correctly into the return.

Step 2 — Training the Business Owner on What’s Taxable

The CPA team explained:
• which sales required QST
• which services were taxable or exempt
• how zero-rated supplies worked
• how to issue compliant invoices

This gave the owner clarity and confidence.

Step 3 — Rebuilding Documentation for the First Period

The business had:
• missing receipts
• unorganized supplier invoices
• inconsistent bookkeeping entries

Mackisen reconstructed:
• expense listings
• proof of payment
• ITR schedules
• monthly reconciliations

Everything was ready for filing.

Step 4 — Preparing and Filing the FPZ-500-V Return

The team:
• calculated QST collected
• verified the accuracy of all ITRs
• reconciled deposits to sales
• double-checked all figures
• filed the return through Revenu Québec

The filing was clean, complete, and error-free.

The Outcome

The first QST filing was:
• accepted immediately
• processed with no verification request
• fully compliant with rules
• filed before the deadline
• free of any penalties or interest

The owner now has a solid foundation for future filings and peace of mind.

Key Lessons

• First-time filers often make avoidable mistakes
• Software must be configured correctly from the start
• Documentation must be maintained monthly, not just at filing time
• Understanding taxable vs. exempt supplies prevents surprises
• A CPA sets businesses up for long-term compliance success

Client Quote

“I was terrified to file my first QST return. Mackisen walked me through everything and made it simple. Now I feel confident.”

Common Questions

Do new businesses get audited more often?
Not necessarily but errors increase the risk.

Can a first return generate a refund?
Yes if expenses exceed sales.

What happens if I file late?
Penalties and interest apply immediately.

Do I need help every period?
Many clients do at first, then take over once trained.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps new entrepreneurs file their first GST/QST returns correctly, avoid penalties, and build lasting compliance habits from day one.