MOVING PROVINCES CHECKLIST: CHANGING YOUR SALES TAX OBLIGATIONS

When a business moves from one Canadian province to another, its sales tax obligations can change immediately. Whether you’re relocating from Quebec to Ontario, expanding into multiple provinces, or moving into Quebec from a region with different sales tax rules, you must adjust how you charge GST, HST, and QST. Failure to update your sales tax systems can lead to incorrect invoicing, penalties, missed remittances, and even audit exposure. This guide provides a complete checklist to follow when your business changes provinces, ensuring full compliance with GST/HST/QST requirements.

Moving provinces affects not just the taxes you collect, but also your registration, invoicing, reporting, and place-of-supply rules. Proper alignment prevents costly corrections later.

LEGAL AND REGULATORY FRAMEWORK

Sales tax rules in Canada depend on:
• the province where the supply is made (place-of-supply rules)
• the tax regime of the destination province (GST, HST, QST, or PST)
• whether your business is registered in each relevant jurisdiction

GST is administered federally under the Excise Tax Act.
QST is administered provincially under the Quebec Taxation Act.
HST applies in certain provinces (Ontario, NB, NS, NL, PEI).
Other provinces have separate PST systems (BC, SK, MB).

When a business moves provinces, it must align registration and tax collection with the provincial rules where supplies are now made, not where the business used to operate.

KEY COURT DECISIONS

Courts across Canada confirm that place-of-supply rules determine which tax applies, regardless of where the business’s head office is located. In several rulings, businesses incorrectly charged GST instead of HST or QST after moving, assuming their previous tax regime still applied. Judges upheld reassessments, stating that businesses must follow tax rules of the jurisdiction where the sale occurs.

Courts also emphasized that registration requirements change when commercial activity moves to another province. Businesses must update GST/HST/QST accounts promptly to avoid incorrect filings and remittances.

WHY TAX AUTHORITIES TARGET MOVING BUSINESSES

Businesses that relocate often overlook administrative updates. Common issues include:
• charging the wrong tax after moving
• forgetting to register for QST when moving into Quebec
• continuing to remit tax to the wrong province
• not applying HST when required
• unclear place-of-supply rules
• mismatched invoices and business addresses
• failure to update Mon Dossier or CRA My Business Account

These inconsistencies often trigger reviews from CRA or Revenue Québec.

MOVING PROVINCES CHECKLIST: CHANGING YOUR SALES TAX OBLIGATIONS

Use this checklist when relocating or expanding into a new province.

1. Determine your new province’s sales tax system
   Identify whether your new province uses:
   • GST only
   • HST
   • QST + GST
   • GST + PST
   This determines your tax collection obligations.

2. Update your CRA and Revenue Québec business accounts
   Move into Quebec:
   • Register for QST immediately
   • Update your business address in Mon Dossier and CRA My Business Account

Move out of Quebec:
• Decide whether to close your QST account or maintain it for Quebec sales
• Update your CRA account with your new address

3. Update registration for GST/HST/QST as needed
   Depending on your destination:
   • Ontario and HST provinces require HST collection
   • Quebec requires both QST and GST
   • GST-only provinces require GST
   • PST provinces require separate PST registration

4. Review place-of-supply rules
   Determine where your supplies are considered made:
   • Goods: where delivery occurs
   • Services: where the customer is located
   • Digital products: customer’s address
   Incorrect assumptions often cause misapplied tax.

5. Update invoicing templates
   Your invoices must reflect new tax obligations:
   • correct GST/HST/QST rates
   • correct registration numbers
   • updated business address
   • accurate tax breakdowns

6. Update accounting software and POS systems
   Modify tax codes in your software to reflect your new obligations. Ensure you remove outdated codes and add new province-specific rates.

7. Review tax treatment for online and interprovincial sales
   Apply place-of-supply rules consistently for customers in all provinces you serve. Mixing provincial tax rules leads to audits.

8. Adjust input tax credit and refund processes
   When moving into Quebec:
   • QST input tax refunds apply only to QST-registered businesses

When moving out of Quebec:
• You may no longer be eligible for certain QST credits

9. Verify compliance with provincial filing frequencies
   Different provinces assign different filing periods. Confirm your new obligations.

10. Notify customers and suppliers
    Communicate tax changes to clients, especially if prices or tax treatment will change.

11. Analyze whether early registration is needed in new jurisdictions
    Businesses expanding to multiple provinces often register before crossing thresholds.

12. Prepare audit-ready transitional documentation
    Tax authorities often review transitions to ensure proper reporting. Maintain clear documentation of your move.

MACKISEN STRATEGY

Mackisen CPA supports businesses relocating or expanding across provinces. We analyze your operations, determine the correct sales tax obligations, and update all registrations with CRA and Revenue Québec. Our team corrects your invoicing, POS tax coding, and accounting systems to ensure that GST/HST/QST are applied correctly based on your new location.

We also prepare place-of-supply summaries, cross-province compliance guides, and internal procedures to keep your business compliant during and after the transition.

REAL CLIENT EXPERIENCE

A business moving from Ontario to Quebec continued charging HST to Quebec customers. Mackisen restructured their registrations, corrected invoices, and prevented a major reassessment.

A tech firm relocating from Quebec to BC failed to cancel its QST account. Revenue Québec continued assessing late remittances. Mackisen closed the account properly and resolved the outstanding notices.

A construction company expanding into multiple provinces misapplied tax rules across jurisdictions. Mackisen built a cross-province tax matrix and updated all systems.

COMMON QUESTIONS

Do I need to register for QST if I move to Quebec
Yes, if you make taxable supplies to Quebec customers.

Do I need to cancel my QST number if I leave Quebec
Only if you no longer make taxable supplies in Quebec.

What if I have customers in multiple provinces
Apply place-of-supply rules for each province. You may need multiple registrations.

Do I charge QST to Ontario customers once I move out of Quebec
No. You charge tax based on the customer’s province, not your old location.

Do I need help updating tax codes
Yes. Incorrect coding is one of the biggest sources of tax errors after moving provinces.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses navigate sales tax transitions when moving provinces. Our expertise ensures accurate registrations, compliant invoicing, and smooth tax transitions across jurisdictions.