SHOULD I CHARGE QST TO CUSTOMERS OUTSIDE QUEBEC

One of the most common GST/QST questions Quebec businesses ask is whether they must charge QST to customers located outside Quebec. The answer depends entirely on place-of-supply rules, which determine which province’s tax applies to a given transaction. Charging the wrong tax — or not charging tax when required — can lead to costly adjustments, refund delays, unhappy customers, and Revenue Québec or CRA reviews. This guide explains clearly when you should (and should not) charge QST to customers outside Quebec.

Understanding these rules is essential for businesses selling across Canada or through e-commerce platforms.

LEGAL AND REGULATORY FRAMEWORK

The rules governing interprovincial taxation are found in:

• Excise Tax Act – federal GST/HST rules
• Quebec Taxation Act – QST rules
• Various provincial sales tax laws (BC, SK, MB)

These laws determine tax obligations based on:

• customer location
• type of supply (goods vs. services vs. digital)
• delivery location
• billing address
• use and consumption rules

Place-of-supply legislation overrides the geographic location of your business.

KEY COURT DECISIONS

Courts in Canada have consistently ruled that:

• businesses must apply the correct provincial tax based on customer location
• Quebec QST cannot be charged to non-Quebec customers unless rules require it
• HST must be charged when selling to customers in HST provinces
• incorrect tax on interprovincial sales justifies reassessment
• sellers cannot rely on software defaults to justify wrong tax

These rulings reinforce the importance of understanding place-of-supply rules.

WHY BUSINESSES GET QST WRONG ON OUT-OF-PROVINCE SALES

Common mistakes include:

• charging QST simply because the seller is located in Quebec
• charging GST only when HST is required
• treating digital services the same as goods
• shipping goods to another province but charging QST
• misconfiguring Shopify, Amazon, Etsy, or POS platforms
• assuming no tax applies outside Quebec

These errors create mismatches between invoices, filings, and provincial rules.

SHOULD YOU CHARGE QST TO CUSTOMERS OUTSIDE QUEBEC?

Here is the clear breakdown.

1. Customers in Quebec — YES, charge QST

If the customer is located in Quebec, QST must be charged, regardless of whether the sale is online or in person.

2. Customers in HST provinces — NO QST, charge HST

If the customer is located in:

• Ontario
• New Brunswick
• Nova Scotia
• Newfoundland and Labrador
• Prince Edward Island

You must charge HST — not QST.

3. Customers in GST-only provinces/territories — NO QST, charge GST

If the customer is in:

• Alberta
• Northwest Territories
• Nunavut
• Yukon

You charge GST only.

4. Customers in GST + PST provinces — NO QST, charge GST + maybe PST

For customers in:

• British Columbia
• Saskatchewan
• Manitoba

You charge GST, and you may need to register for PST depending on:

• sales volume
• business presence
• type of goods/services
• economic nexus thresholds

QST does not apply.

5. Customers outside Canada — Usually NO QST, zero-rated GST

Exports of goods and many services are generally zero-rated (0% GST).
QST does not apply.

Digital services to international customers follow different rules — but still do not charge QST.

6. Special case: digital or SaaS services to Quebec customers

Even if you are outside Quebec, if the customer is in Quebec, QST may apply under non-resident supplier rules.

7. Shipping vs. pick-up

If you ship goods outside Quebec → tax based on the destination.
If the customer picks up goods in Quebec → QST applies.

8. Mixed-location customers

If billing address is in one province but goods are delivered to another, delivery location controls the tax.

COMMON PITFALLS TO AVOID

• Charging QST on out-of-province sales
• Charging GST instead of HST to Ontario clients
• Forgetting PST when required in BC, SK, MB
• Overcharging tax on digital services
• Sending invoices without provincial tax breakdown
• Ignoring customer location in e-commerce platforms
• Incorrectly applying zero-rating rules

These mistakes often lead to adjustments or verification requests.

MACKISEN STRATEGY

Mackisen CPA helps businesses apply the correct tax across all provinces. We review your sales transactions, configure your accounting and e-commerce tax settings, determine registration requirements in other provinces, and correct past invoices or filings.

We build place-of-supply matrices, ensure tax consistency across platforms, and protect your business from costly errors in interprovincial transactions.

REAL CLIENT EXPERIENCE

A Quebec online retailer charged QST to Ontario customers. Mackisen corrected filings and avoided penalties.

A consultant serving Nova Scotia clients charged GST instead of HST. Mackisen recovered under-remitted amounts and updated invoicing.

A Shopify merchant incorrectly charged GST/HST to U.S. customers. Mackisen set up proper zero-rated tax codes.

COMMON QUESTIONS

What if I accidentally charged QST to someone in Ontario?
You must correct the invoice and your GST/QST return.

Do I ever charge QST outside Quebec?
Generally no except in special non-resident supplier cases where the customer is in Quebec.

Do digital services follow the same rules as goods?
Mostly yes but international rules differ.

Does customer billing address matter?
Delivery or consumption location is more important.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal ensures your business charges the correct tax in every province. Our sales tax expertise reduces audit risk and prevents costly interprovincial tax errors.