Quebec GST/QST (TPS/TVQ) Filing 2025 — Guide for Montreal Small Businesses

Dealing with GST and QST obligations can be daunting for entrepreneurs in Québec. Whether you’re an individual freelancer or a growing company, navigating Montreal small business taxes like GST/QST (called TPS and TVQ in French) is critical for compliance. In fact, Québec has unique filing rules – the provincial tax authority (Revenu Québec) administers both the federal GST and the provincial QSTt2inc.ca. This guide explains what Quebec business owners need to know about filing GST/QST returns, and how working with a local CPA can simplify the process. We’ll also highlight how Mackisen Consultation Inc., a leading CPA Montreal firm, can help you file taxes with an expert Montreal team for peace of mind.

Understanding GST (TPS) and QST (TVQ) in Quebec

Dual Tax System: Quebec is the only province where businesses must deal with two separate sales taxes – the 5% federal Goods and Services Tax (GST) and the 9.975% provincial Québec Sales Tax (QST). Together, these amount to a combined rate of 14.975% on most sales. Unlike other provinces (where GST/HST is filed with the CRA), in Québec Revenu Québec manages the GST on behalf of the CRAThis means Quebec businesses register and file both taxes through Revenu Québec’s system, using one identification number for both GST and QST.

Registration Threshold: Small businesses are not required to register for GST/QST until their sales reach a certain level. Quebec follows the federal “small supplier” threshold of $30,000 in total revenues in a single quarter or over four consecutive quarters If your worldwide taxable sales (before taxes) are under $30,000, you’re considered a petit fournisseur (small supplier) and generally do not have to collect or remit TPS/TVQ. Once you exceed $30k, however, you must register for both GST and QST and begin charging these taxes on your sales. (Note: if you register voluntarily while under the threshold, you’ll be obligated to collect/remit taxes and can claim input tax credits/refunds on expenses

GST vs QST: Both GST and QST are value-added sales taxes applied to most goods and services in Quebec. GST is federal, while QST is provincial, but both are collected via Revenu Québec in this province. QST is calculated at 9.975% on the sale price (not including GST), whereas GST is 5%. It’s important to remember TPS (taxe sur les produits et services) is simply the French term for GST, and TVQ (taxe de vente du Québec) is the French term for QST – they refer to the same taxes. As a Quebec business, you generally need to charge both on each taxable sale and remit them separately (even though the filing is done in one place)

How to File GST/QST Returns in Québec

Filing Frequency: Once registered, your business will have to file GST and QST returns on a periodic schedule. The reporting frequency is usually based on your annual taxable sales – most small or new businesses file quarterly, while larger businesses might file monthly (and the smallest may be allowed to file annually). Revenu Québec will assign a filing frequency when you register, but you can request a change if needed It’s crucial to submit each return by the due date for that period to avoid late penalties and interest. For example, a quarterly return for Q1 (Jan–Mar) is typically due by the end of April.

Where and How to File: In Québec, all GST/QST returns are filed through Revenu Québec (you do not send a GST return to the CRA). As of 2024, virtually all businesses must file online via Revenu Québec’s My Account (Mon dossier) portal. The online system lets you file both the GST and QST portions together in one form (the FPZ-500 form is used for combined GST/QST reporting). You’ll enter your total sales, GST collected, QST collected, and any credits (ITCs/ITRs) for the period. Revenu Québec’s site supports filing in English or French, and you can also remit any payment electronically at the same time. (Note: Since January 1, 2024, electronic filing is mandatory for GST/QST returns for all registrants except certain charitiesDeadlines and Payments: GST/QST filing deadlines in Quebec generally fall one month after the end of your reporting period. So, a monthly filer’s return for May would be due by June 30, and a quarterly filer’s Q4 return (Oct–Dec) would be due by end of January. Annual filers usually must file by the end of March or June (depending on fiscal year). Payment of any balance owing is due by the same deadline – you can pay through the Revenu Québec online services or via your financial institution. It’s wise to file and pay well before the deadline to allow processing time; if you file late or pay late, penalties and interest will accrue. Revenu Québec may charge a late-filing penalty and daily interest on overdue amounts. To keep your business in good standing, mark your calendar with all GST/QST due dates or hire an accountant to handle timely submissions.

Claiming Credits: One benefit of registering is that you can recover taxes paid on your business inputs. When filing, you’ll deduct your input tax credits (ITCs) for GST and input tax refunds (ITRs) for QST – these come from the GST/QST you paid on business expenses. Make sure you maintain purchase invoices and receipts, as you’ll need documentation to support any credits you claim If your ITCs/ITRs exceed the taxes you collected (e.g. in a start-up phase or a slow quarter), you could get a refund. Conversely, if you collected more than you paid, you’ll have a remittance to send in. Either way, filing on time is important: even if the net result is $0 or a refund, a return still must be filed each period

Common GST/QST Filing Challenges for Small Businesses

Filing GST and QST in Quebec can be tricky, especially for first-time filers or small businesses without dedicated accounting staff. Here are some common challenges and mistakes to watch out for:

·   Missing the Registration Threshold: A lot of entrepreneurs start as small suppliers and don’t realize when they’ve crossed the $30,000 sales threshold. Failing to register on time can lead to owing back taxes. It’s important to monitor your revenue and register for TPS/TVQ as soon as you’re requiredIf you delay, you may have to remit GST/QST that you should have collected from customers – effectively paying out of pocket.

·   Incorrect Tax Calculations: Some businesses charge the wrong tax rate or forget to apply both taxes. For instance, charging GST but not QST (or vice versa) on a taxable sale is a frequent error. Others mistakenly calculate QST on top of GST (using an old method that hasn’t been in effect for years) Always apply 5% GST to the sale price, and 9.975% QST to the sale price (exclusive of GST). The two taxes are calculated in parallel, not one on the other. Using accounting software or a professional can ensure the rates are applied correctly on every invoice.

·   Poor Record-Keeping: Inadequate bookkeeping can turn GST/QST filing into a nightmare. Remember that you must track all sales and taxable supplies, as well as keep receipts for expenses on which you’re claiming credits. Quebec law requires supporting documents be kept for at least six to seven years. If you cannot substantiate a claimed ITC/ITR during an audit (for example, an invoice is missing), the credit may be denied and you’d end up owing more tax. Avoid this by organizing sales records, purchase invoices, and tax calculations each period.

·   Late Filing or Payments: Missing a deadline is another common pitfall. Even if you owe nothing, a late GST/QST return can trigger penalties. Quebec tax authorities are strict about due dates – penalties can range from 5% to 15% of the amount owing, plus interest, depending on how late the filing is. If you’re struggling to keep up with frequent filings (say, monthly), consider consulting an accountant to manage it. It’s far cheaper to file on time with help than to incur fines.

·   Complex Situations (Imports, Online Sales, etc.): Businesses that operate across provinces or online face extra complexities. If you sell to customers outside Quebec, or you’re an out-of-province/foreign company selling into Quebec, you might have special QST registration rules (like the specified QST system for non-residents). Also, certain sectors have their own rules – e.g., construction, hospitality, charities, etc., have exemptions or rebates available. Navigating these without guidance can be difficult. A tax consultant near me who understands local rules can help ensure you apply the right rules for your industry.

Audit Triggers: Even when you do your best to comply, know that CRA and Revenu Québec share data and closely scrutinize GST/QST filings. Quebec’s systems are integrated with the federal CRA, so any discrepancies between your GST and QST reports or between your sales tax and income tax returns can raise red flags Common triggers for a tax audit include: repeatedly claiming large refunds, significant ITC/ITR amounts relative to sales, or reporting sales that don’t match what you reported as income on income tax returns To avoid issues, always report carefully and consistently. If you do get a notice of audit, it’s wise to involve a professional CPA or tax lawyer immediately to defend your filings – errors can often be corrected or penalties negotiated if handled properly

Why Hire a CPA for GST/QST Filing in Montreal

Many small business owners start off filing their GST/QST returns on their own. However, as your business grows (or as regulations change), partnering with a chartered accountant in Quebec can save you time, money, and stress. Here’s why working with a professional – especially a local Montreal CPA – is a smart investment:

·   Local Expertise: A Montreal-based CPA is deeply familiar with Quebec’s tax system and bilingual requirements. They understand Revenu Québec’s processes, forms, and even unwritten practices. Instead of trying to interpret government guides in French, you can rely on a pro who files TPS/TVQ reports routinely. (When clients search for an “accounting firm near me”, they’re often seeking this kind of accessible local knowledge.)

·   Accuracy & Compliance: CPA firms have the training to get your numbers right. They ensure you charge the correct taxes, claim all eligible credits, and file on time. This keeps you compliant with laws and avoids costly mistakes. In the long run, avoiding penalties or audit headaches more than pays for the service. (No more sleepless nights double-checking if you did the form correctly!)

·   Time Savings: Preparing sales tax returns – adding up invoices, calculating adjustments – can eat up many hours each month or quarter. By delegating this to a professional, you free yourself to focus on growing your business. As a busy entrepreneur, your time is valuable, and handing off the tax paperwork can be a huge relief.

·   Maximizing Deductions: Business tax experts in Montreal don’t just file forms; they look for ways to save you money. A seasoned tax consultant will ensure you’re claiming all input tax credits and refunds available. They can also advise if the Quick Method of accounting for GST/QST would benefit you, or if any industry-specific rebates apply to your business. Essentially, a good accountant makes sure you never leave money on the table.

·   Audit Support & Peace of Mind: Perhaps one of the biggest advantages is having a defender on your side. If Revenu Québec or the CRA ever questions your filings, your tax consultant or CPA will handle the communication, provide supporting documents, and settle issues for you. You won’t be alone if a compliance letter arrives. Knowing that your books are handled by a professional provides peace of mind. As one of our clients put it, “having Mackisen behind us felt like having the best accountant in Montreal watching out for our interests.”

·   Holistic Financial Guidance: Most CPAs can assist beyond just sales tax. When you work with a full-service firm, you gain a year-round advisor for all your financial needs – from corporate tax planning to payroll, financial statements, and business advice. Instead of just googling the “best accountant Montreal” every tax season, you build a relationship with experts who understand your business inside and out. They can help with strategic decisions, ensure you’re structured optimally (e.g. should you incorporate or register for certain programs), and even represent you in complex matters.

In short, hiring a professional accountant means your GST/QST obligations (and other taxes) will be handled correctly and efficiently, and you’ll get strategic insights to help your business grow. It’s an investment in professional support that often leads to higher returns and fewer tax worries.

FAQ: Quebec Sales Taxes and CPA Services

Q: Do I need a CPA to file GST in Quebec?
A: Not necessarily – you can file your GST/QST returns yourself through Revenu Québec’s online system. However, many business owners choose to hire a CPA for this. A qualified accountant ensures the forms are completed accurately, maximizes your refunds, and keeps you compliant with deadlines. If you’re not familiar with Quebec’s tax nuances (or simply short on time), working with a CPA – especially a local Montreal CPA who knows the TPS/TVQ system – can be highly beneficial. It’s about peace of mind and avoiding costly errors.

Q: When must I register for TPS/TVQ in Quebec?
A: You must register for GST/QST (TPS/TVQ) before making taxable sales in Québec that exceed $30,000 in a 12-month period In practical terms, once your total revenues in the last four quarters go over $30,000, you’re required to get a tax number and start collecting these taxes. If you’re under the threshold, registration is optional – but once you cross $30k, it’s mandatory to register promptly. Keep an eye on your sales: hitting, say, $32,000 in sales in a year means you should have been registered and charging GST/QST on the transaction that pushed you over the limit. (Special cases aside, $30,000 is the magic number for most businesses.)

Q: How often do I need to file GST/QST returns?
A: It depends on your assigned filing frequency, which is usually based on your sales volume. Many small businesses file quarterly (4 times a year). Larger businesses may need to file monthly, and some very small or part-time businesses can file annually Revenu Québec will tell you your default filing frequency when you register. For example, new small businesses are often set to quarterly filing by default. If your sales grow significantly, you may be switched to monthly. It’s important to file every reporting period even if you have no taxes to remit (e.g. zero sales or all sales to customers outside Quebec). Mark the due dates on your calendar – typically the last day of the month following the period’s end.

Q: How do I actually file the returns and pay the taxes?
A: The simplest way is online via Revenu Québec’s My Account for businesses. Once logged in, you can complete the GST/QST return (it’s a combined form online) by inputting your sales figures, GST collected, QST collected, and any credits. After submitting, the system will tell you the amount payable or refund. You can then pay electronically directly from your bank account. Alternatively, some businesses use their bank’s online tax filing service to file and pay in one stepPaper filing is no longer the norm (and as of 2024, almost everyone is required to file electronicallyIf you ever have trouble, a chartered accountant (expert-comptable) can handle the filing on your behalf or guide you through the process.

Q: Can an accounting firm help with corporate income tax as well as GST/QST?
A: Yes. Most accounting firms (including Mackisen) provide comprehensive tax services. That means they don’t just handle GST/QST filings – they can also prepare corporate income tax returns, financial statements, payroll, personal tax for business owners, and more. If you’re looking for a one-stop solution, choose a firm that offers CPA services in Montreal spanning accounting, tax, audit, and consulting. This way, your GST/QST compliance will fit into a broader tax strategy for your business. At Mackisen, for example, our team coordinates sales tax filings with your year-end corporate tax planning to ensure everything is consistent and optimized.

Why Mackisen – Your Montreal CPA Partner for Tax Success

Mackisen Consultation Inc. is not just another accounting firm – we are Montreal’s trusted full-service CPA network, dedicated to helping local businesses thrive. With a full-service network of 355+ professionals backing our Montreal office, we offer an unmatched breadth of expertise. Our team includes chartered professional accountants, veteran auditors, tax lawyers, and business consultants, all working together for you. This means no matter what challenge you face – be it GST/QST compliance, a CRA audit, corporate tax planning, or business registration – you have the right expert to turn to under one roof.

Credibility and Experience: We bring over 35 years of experience and have assisted 5,000+ clients across Quebec. Mackisen CPAs have seen it all when it comes to Quebec taxes – we’ve helped startups correctly set up their TPS/TVQ collection from day one, guided retailers through complex QST rules, and defended clients in combined CRA/Revenu Québec audits. Our full-service approach means we don’t just file your forms; we provide strategic advice to minimize taxes and avoid problems. And if the government ever comes calling, our audit and legal team (including former tax officials and skilled negotiators) will protect your interests vigorously.

Small Business Specialists: We pride ourselves on specialized services for small and medium-sized businesses. From initial business registration and obtaining your tax numbers, to monthly bookkeeping, payroll, GST/QST return filings, and year-end financial statements – Mackisen offers end-to-end support. We understand the needs of entrepreneurs and owner-managed companies in Montreal and Quebec. Our advice is always tailored to your situation. For example, if you’re a new IT consultant operating as a sole proprietor, we can handle your GST/QST filings and also advise if it’s time to incorporate. If you run a boutique with cross-border sales, we ensure you charge the right taxes and claim the right rebates. This personalized guidance is what sets us apart from a generic accounting service.

Bilingual and Local: Montréal is a bilingual city, and so is our firm. Vous préférez en français? Aucun problème – nos professionnels parlent anglais et français. We ensure language is never a barrier in handling your finances. Being local also means we’re just a call or short drive away. If you’ve been searching for a “tax consultant near me” or an “accounting firm near me” that truly understands Quebec’s landscape, Mackisen is here. We’re familiar with local industry nuances, from Quebec construction tax certificates to retail sector specifics. Our Montreal office is part of the community, and we care about local business success.

Network Power: Mackisen is part of a global network (“Mackisen Global”) of member firms, which gives our clients the best of both worlds – local Montreal attention and international-caliber expertise. Our network of over 355 professionals worldwide means we can draw on specialized knowledge for complex issues (like international sales tax, cross-border transactions, advanced tax planning) while still providing the friendly, hands-on service of a boutique firm. Essentially, we offer “big firm” capabilities with “small firm” care.

Proven Results: Our success stories speak volumes. We’ve helped a Montreal retailer recover tens of thousands in overpaid QST, guided a manufacturing company through voluntary disclosure to register late for GST/QST without penalties, and implemented efficient tax tracking systems for startups so they never miss a filing. We aim to be the business tax expert in Montreal that clients rely on year after year. It’s no surprise many of our new clients come through referrals – a testament to our quality and trustworthiness.

Ready to Help – Let’s File Those Taxes! At Mackisen CPA Auditors Montreal, our mission is to make taxes and compliance stress-free for you. When you partner with us, you’re not just getting an accountant to fill out forms – you’re getting a trusted advisor invested in your success. We ensure accurate filings, minimized taxes, and total compliance with all CRA and Revenu Québec requirements. Most importantly, we give you the confidence that comes with having professionals handle the heavy lifting.

Contact us today for your GST/QST and tax consultation. The first meeting is free – we’ll discuss your needs (in English or en français) and show you how our CPA services in Montreal can save you time and money. Don’t gamble with something as important as taxes. Call Mackisen CPA Montreal and let our best-in-class team help your business stay compliant, grow, and prosper. Your road to hassle-free GST/QST filing and optimized taxes starts now – we’re here to help!