QST Rules for Quebec and Out-of-Province Sellers

Introduction
Understanding QST rules for Quebec and out-of-province sellers is essential for Canadian businesses, online sellers, e-commerce platforms, service providers and non-resident suppliers who operate or sell to customers in Québec. Québec administers its own provincial sales tax system—QST (Québec Sales Tax)—separate from GST/HST. Because of the province’s unique regulatory environment and aggressive enforcement through Revenu Québec, businesses that misunderstand QST obligations face reassessments, penalties and denied input tax refunds. This comprehensive guide explains QST rules for Quebec and out-of-province sellers so businesses can remain compliant whether they operate inside the province or sell into it.

Legal and Regulatory Framework
QST rules for Quebec are governed by the Québec Taxation Act and administered exclusively by Revenu Québec. Québec’s QST system:

• is similar to GST/HST but remains provincially controlled
• requires separate QST registration in addition to GST
• applies to most taxable goods and services sold in the province
• imposes strict recordkeeping, invoicing and remittance rules
• includes special rules for non-resident suppliers and digital platforms

Businesses must register for QST if:

• they carry on business in Québec, or
• they sell taxable goods or services to Québec consumers and meet remote seller thresholds, or
• they operate as a marketplace facilitator with Québec customers

For Canadian sellers outside Québec (“out-of-province sellers”), QST registration may still be mandatory under Québec’s Specified Registration System, introduced in 2019.

Understanding QST rules for Quebec prevents significant compliance errors.

QST for Businesses Located in Québec
Businesses physically operating in Québec must:

• register for a QST number
• charge QST at 9.975%
• charge GST at 5%
• file QST returns separately from GST/HST
• issue invoices that comply with Revenu Québec documentation standards
• track Input Tax Refunds (ITRs) for QST paid on expenses
• remit QST by monthly, quarterly or annual deadlines

Québec audits QST filings vigorously, especially in retail, construction, health services, digital services and consulting sectors.

QST for Out-of-Province Sellers (Inside Canada)
Out-of-province sellers who are not physically located in Québec may still be required to register for QST if they:

• sell more than $30,000 per year in taxable goods or services to Québec consumers, and
• do not have a physical presence or warehouse in Québec

Under these rules:

• the seller must charge QST
• the seller must remit QST to Revenu Québec
• the seller must maintain compliant QST invoices
• QST is charged even if the seller is based in another province

This applies to:

• e-commerce sellers
• consulting firms
• digital service providers
• remote Canadian businesses selling to Québec individuals

Understanding QST rules for Quebec is critical for interprovincial businesses selling to Québec customers.

QST Rules for Non-Resident Sellers (Outside Canada)
Québec also requires foreign businesses to collect QST when selling digital or tangible goods to Québec consumers. This includes:

• SaaS companies
• subscription platforms
• streaming services
• online course providers
• downloadable software
• e-commerce sellers shipping goods to Québec

These suppliers must register under the Specified Registration System, charge QST and remit it to Revenu Québec—even when they do not charge GST/HST.

Key Court Decisions
Courts have issued important rulings that influence QST rules for Quebec. Key principles include:

• sellers cannot avoid QST by claiming “no physical presence”
• invoices missing QST numbers result in denied ITR claims
• out-of-province sellers must comply when thresholds are met
• foreign digital service providers must register under Québec rules
• QST must be charged at the time of sale, not retroactively
• bundled services require proper tax classification

Québec courts consistently uphold Revenu Québec’s strict enforcement of QST compliance.

Why Revenu Québec Targets This Issue
Revenu Québec aggressively audits QST compliance because:

• many out-of-province and online sellers misunderstand their obligations
• digital platforms often fail to charge QST correctly
• invoices frequently omit required information
• QST collected is sometimes not remitted
• ITC/ITR claims are often unsupported
• place-of-supply errors occur frequently

Audit triggers include:

• large QST refunds
• mismatched GST vs QST filings
• high sales into Québec without QST registration
• online businesses with Québec customers
• missing or incorrect QST numbers on invoices
• repeated late filings

Understanding QST rules for Quebec prevents costly penalties and reassessments.

Mackisen Strategy
Mackisen CPA provides a complete strategy to ensure compliance with QST rules for Quebec and out-of-province sellers:

• determining whether registration is mandatory
• registering businesses under the correct QST regime
• setting up invoicing systems with accurate QST codes
• calculating QST and GST separately
• reconciling Input Tax Refunds (ITRs) and Input Tax Credits (ITCs)
• reviewing place-of-supply rules for Québec-specific transactions
• preparing QST and GST returns
• correcting past errors through Revenu Québec voluntary disclosure
• supporting businesses during Revenu Québec audits

We ensure businesses operate seamlessly under both provincial and federal sales tax systems.

Real Client Experience
Many businesses seek Mackisen after running into issues with QST rules for Quebec. One Ontario-based e-commerce company exceeded $30,000 in Québec sales and failed to register. Revenu Québec issued retroactive assessments. Mackisen registered them and corrected all filings.

A foreign software company sold subscriptions to Québec customers without charging QST. We registered the business under the Specified Registration System and filed backdated returns.

A Québec consulting firm charged GST only, forgetting to charge QST. We corrected invoicing and refiled previous returns.

A digital creator generating revenue from Québec residents through online platforms had no QST number. We set up full compliance and avoided penalties. These real cases show the importance of understanding QST rules for Quebec.

Common Questions
Clients often ask:

• Do I need a QST number if I’m outside Québec?
Yes—if selling taxable goods or services to Québec consumers and exceeding the threshold.

• Do I charge GST and QST in Québec?
Yes—both apply unless the product is exempt.

• Do foreign companies need to register?
Yes—for digital and remote services.

• Can I claim QST refunds?
Only if registered under the general regime—not under the specified regime.

• Can QST be charged retroactively?
No—QST must be charged at the time of sale.

Understanding these answers ensures full compliance with QST rules for Quebec.

Why Mackisen
With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses stay compliant while recovering the taxes they’re entitled to. Whether you're filing your first GST/QST return or optimizing multi-year refunds, our expert team ensures precision, transparency and protection from audit risk. When advising on QST rules for Quebec and out-of-province sellers, Mackisen provides complete registration, compliance, audit defense, and sales tax optimization solutions.