Recovered QST on Expenses With Expert Help

A Montreal non-profit organization (NPO) was struggling to recover QST on thousands of dollars in annual expenses. Despite being eligible for rebates and refunds as a public service body, the organization missed out year after year due to incorrect filings, missing documentation, and misunderstandings about which expenses qualified. After partnering with Mackisen, the NPO successfully recovered significant QST amounts and implemented a sustainable, audit-ready process for the future.

This case study shows how expert guidance helped the organization reclaim money it didn’t know it was entitled to.

The Situation: Years of Missed QST Recovery

The non-profit:
• paid QST on supplies, services, software, and equipment
• had incomplete bookkeeping
• didn’t understand public service body (PSB) rebates
• submitted filings without full supporting documents
• mixed exempt activities with taxable activities
• lost refunds due to improper coding

Because of these issues, the organization consistently failed to recover eligible QST.

The Trigger: A Revenu Québec Inquiry

Revenu Québec requested additional information after noticing:
• inconsistent reporting
• QST rebates that didn’t match expenses
• missing invoices in filings
• unusual patterns in the PSB rebate claims

This inquiry pushed the NPO to seek professional help before the situation escalated.

How Mackisen Turned the Situation Around

Step 1 — Reviewing Eligibility and Activity Classification

The CPA team analyzed:
• the NPO’s activities
• exempt vs. taxable components
• eligibility under PSB rebate rules
• QST-exempt services
• areas where refunds were missed

This helped clarify exactly what could be claimed and what couldn’t.

Step 2 — Full Reconstruction of QST-Eligible Expenses

Mackisen rebuilt several years’ worth of:
• supplier invoices
• digital receipts
• payment confirmations
• contracts
• expense reports

The missing documentation was replaced or reconstructed.

Step 3 — Preparing Accurate Rebate Claims

Using the reconstructed expenses, Mackisen prepared:
• complete PSB rebate schedules
• detailed supporting documentation
• corrected QST refund forms
• reconciliation between books and rebate amounts

This made the claims easy for Revenu Québec to process and approve.

Step 4 — Communication With Revenu Québec

The CPA team:
• submitted all rebate documents
• responded to additional questions
• clarified which services were exempt
• corrected coding misunderstandings
• ensured the claims passed verification

The internal errors were fully resolved.

The Outcome

The NPO:
• recovered a significant amount of QST
• fixed years of missed rebate opportunities
• avoided penalties
• restored accurate filings
• gained a clear understanding of rebate eligibility
• implemented systems to prevent future losses

Revenu Québec closed the inquiry with no further action.

Key Lessons

• Non-profits often miss out on refunds due to misunderstanding PSB rules
• Proper documentation is essential for QST recovery
• Revenu Québec will question inconsistent claims, but errors can be corrected
• Reconstructing records is possible even for multiple years
• A CPA can dramatically increase rebate success

Client Quote

“We were losing money every year and didn’t know why. Mackisen found the missing refunds and taught us how to file correctly.”

Common Questions

Are non-profits exempt from QST?
No they pay QST but often qualify for special rebates.

Can missing documents be replaced?
Yes suppliers can reissue invoices, and digital receipts can often be retrieved.

Does the PSB rebate apply to all expenses?
Not only eligible goods and services.

What if we filed incorrectly in past years?
Mackisen can prepare adjusted rebate claims.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps non-profits recover eligible QST amounts, correct rebate filings, and maintain audit-ready documentation ensuring no money is left unclaimed.