Insights
Nov 12, 2025
Mackisen
New Business Owner’s First GST/QST (TPS/TVQ) Filing: What to Do and Watch Out
Filing your first GST/QST (TPS/TVQ) return as a new business owner in Quebec can be intimidating — but it doesn’t have to be. This Mackisen CPA Montreal guide breaks down exactly what to do, what to avoid, and how to stay compliant with both Revenu Québec and the Canada Revenue Agency (CRA) from day one.
Why Your First GST/QST (TPS/TVQ) Filing Is So Important
Your first GST/QST (TPS/TVQ) filing Quebec is more than a formality — it sets the tone for your business’s financial reputation. Revenu Québec and the CRA use your first filing to establish your compliance track record. Filing correctly and on time builds trust, speeds up refunds, and protects you from unnecessary audits or penalties later on.
Under the Excise Tax Act (R.S.C. 1985, c. E-15) and the Tax Administration Act (CQLR c. A-6.002), every registered business in Quebec is responsible for collecting and remitting GST (5%) and QST (9.975%) on taxable goods and services. Your filings show how much tax you collected from customers and how much you paid on your own purchases — the difference determines whether you owe money or are entitled to a refund.
New business owners often make costly mistakes simply because they misunderstand their obligations or rely too heavily on accounting software without verifying entries. Mackisen CPA Montreal helps first-time filers avoid these pitfalls through CPA-reviewed filings, compliance training, and audit-proof documentation systems.
Step 1 — Register Early and Set Up Proper Accounts
If your business’s annual taxable sales exceed $30,000, registration for GST and QST is mandatory.
Even if you haven’t reached the threshold, early voluntary registration is often beneficial — it allows you to claim Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) on eligible expenses.
You’ll need to:
Register for a GST number (RT0001) with CRA.
Register for a QST number (TQ0001) with Revenu Québec.
Set up Mon dossier pour les entreprises (Revenu Québec) and CRA My Business Account for filing.
Mackisen CPA Montreal assists new entrepreneurs with registration, ensuring all accounts are correctly linked so your first GST/QST (TPS/TVQ) filing Quebec runs smoothly.
Step 2 — Track Every Transaction from Day One
From the moment you register, every invoice, receipt, and expense matters. Revenu Québec and CRA both require accurate documentation to support the figures in your first filing.
Keep digital and paper copies of:
Sales invoices (with GST/QST clearly shown).
Supplier invoices and receipts for business purchases.
Bank statements and payment confirmations.
Contracts, export records, and credit memos.
Tip: Use accounting software like QuickBooks, Xero, or Sage, but always verify tax codes manually. Automated systems can misapply GST/QST rates — a common rookie error that Mackisen CPA Montreal’s pre-filing review can catch instantly.
Step 3 — Calculate Your Net Tax Correctly
Your net GST/QST (TPS/TVQ) is calculated as:
(Taxes collected from customers) – (Taxes paid on eligible expenses) = Net tax owing or refund due.
Example:
GST/QST collected on sales: $2,500
GST/QST paid on expenses: $1,800
Net tax owing: $700
If your expenses exceed your sales — typical for startups — you’ll likely receive a refund instead of owing tax. Mackisen CPA Montreal ensures you claim every possible credit while staying compliant with CRA and ARQ laws.
Step 4 — File Online (Never by Paper)
Filing your GST/QST (TPS/TVQ) return electronically is now the standard. It’s faster, safer, and provides instant confirmation.
Use these platforms:
CRA My Business Account — for GST/HST filings.
Revenu Québec Mon dossier pour les entreprises — for QST (TVQ).
Online filing provides automatic validation, reducing human errors that could delay refunds or trigger audits. You’ll also receive confirmation numbers immediately — your legal proof of submission.
Mackisen CPA Montreal files all returns electronically, double-checking each figure for accuracy and ensuring your first filing is recorded properly across both agencies.
Step 5 — File On Time, Even If You Owe Nothing
Your first return must be filed by the due date assigned to your business:
Monthly filers: within one month of the end of the reporting period.
Quarterly filers: within one month after the quarter ends.
Annual filers: within three months of your fiscal year-end.
If you have no sales yet, you still need to file a nil return. Missing or late filings automatically trigger a 5% penalty plus 1% per month, as outlined in both CRA’s Excise Tax Act and ARQ’s Tax Administration Act.
Even if you can’t pay right away, always submit your return on time. Filing late can harm your compliance record with Revenu Québec.
Step 6 — Common Pitfalls to Watch Out For
1. Forgetting to charge QST: Many first-time business owners apply only the 5% GST, forgetting the additional 9.975% QST. Revenu Québec views this as undercollection — and you’ll still owe the difference.
2. Missing input credits: Failing to claim ITCs or ITRs means losing money. Keep all receipts with visible GST/QST amounts and supplier registration numbers.
3. Filing inconsistent data: CRA and ARQ systems cross-verify returns. If your GST/HST numbers don’t match your QST data, expect an audit or refund delay.
4. Combining business and personal transactions: Keep accounts separate to avoid confusion and protect your audit trail.
5. Submitting by mail: Paper returns are outdated, slower, and risk rejection.
Mackisen CPA Montreal clients avoid these issues through automated reconciliation systems, CPA verification, and full electronic filing support.
Step 7 — Keep Everything for Six Years
Revenu Québec and CRA can audit up to six years of GST/QST (TPS/TVQ) filings. Under Section 230 of the Income Tax Act and Section 94 of the Tax Administration Act, failure to produce records can lead to reassessments and denied credits.
Mackisen CPA Montreal provides clients with secure, cloud-based record storage — ensuring all invoices, receipts, and filing confirmations are audit-ready at any time.
Step 8 — Get Professional Guidance Early
Your first filing is your learning curve — and your best chance to start strong. Mackisen CPA Montreal helps new entrepreneurs:
Register properly with CRA and Revenu Québec.
Set up filing systems and digital records.
File accurately and on time.
Identify tax credits and refunds.
Maintain full compliance under both laws.
A 30-minute CPA consultation before your first filing can prevent months of financial stress, refund delays, and costly penalties.
Real-Life Example — Filing Done Right
A new Montreal-based marketing consultant registered for GST/QST but forgot to file her first quarterly return on time. Revenu Québec issued a $400 penalty and froze her refund. After contacting Mackisen CPA Montreal, our team corrected her filings, restored her account, and set up automated quarterly submissions. Within two quarters, her compliance score with Revenu Québec improved, and her future refunds were deposited on schedule.
Starting with expert help made all the difference.
Mackisen CPA Montreal — Helping New Businesses File with Confidence
With over 35 years of combined experience, Mackisen CPA Montreal has helped hundreds of Quebec entrepreneurs navigate their first GST/QST (TPS/TVQ) filing Quebec without errors. Our bilingual CPA team ensures every client stays compliant with CRA and Revenu Québec, while maximizing credits and minimizing risk.
We handle everything from registration to reconciliation, allowing you to focus on running your business — not worrying about tax forms.
Key Takeaways for First-Time Filers
Register early and link CRA and ARQ accounts.
Keep all receipts, invoices, and proofs for six years.
File on time even for nil returns.
Claim all eligible Input Tax Credits and Refunds.
File electronically for faster processing and fewer mistakes.
Consult a CPA before filing to avoid penalties and audit risks.
Your first GST/QST (TPS/TVQ) filing Quebec is your chance to prove your professionalism. With Mackisen CPA Montreal guiding you, you’ll establish compliance, accuracy, and financial stability from day one.
