STARTUP CHECKLIST: REGISTERING YOUR BUSINESS FOR GST/QST AND MORE

Starting a business in Quebec involves more than selecting a name, creating a logo, or designing a website. One of the first legal responsibilities of any new entrepreneur is registering properly for GST and QST — along with several other key administrative steps that form the foundation of full tax compliance. Many startups delay these obligations, resulting in non-compliant invoices, missed input tax credits, refund problems, and avoidable penalties. This startup checklist guides you through the steps required to register for GST/QST and complete the essential early tasks that every new Quebec business must perform.

Following this checklist helps ensure your business launches smoothly, fully compliant, and ready to grow without administrative setbacks.

LEGAL AND REGULATORY FRAMEWORK

GST registration is governed by the Excise Tax Act and QST registration by the Quebec Taxation Act. Businesses must register when their worldwide taxable revenues exceed thirty thousand dollars over four consecutive quarters. However, many startups choose to register voluntarily before reaching the threshold to claim input tax credits and avoid retroactive tax collection.

Startups may also need to register for:
• Revenue Québec source deductions
• corporate income tax accounts
• payroll remittances
• licensing or permits
• provincial business registration (REQ)

GST and QST are administered—uniquely in Quebec—by Revenue Québec. Once registered, startups must collect, remit, and report the taxes accurately on the FPZ-500-V return.

KEY COURT DECISIONS

Courts consistently uphold that the responsibility to register and comply with GST/QST rules rests solely with the business owner. In multiple rulings, judges upheld reassessments where startups:
• exceeded the $30,000 threshold unknowingly
• issued invoices without valid tax numbers
• attempted to claim input tax credits without supporting invoices
• misclassified exempt vs. taxable supplies

The courts confirmed that lack of knowledge or inexperience does not excuse non-compliance.

WHY TAX AUTHORITIES MONITOR STARTUPS

Startups often make administrative mistakes due to rapid growth and limited accounting resources. Revenue Québec specifically reviews new businesses for:
• early registration delays
• non-compliant invoices
• missing supplier documentation
• inconsistent reporting
• refund claims without support
• misconfigured POS or accounting systems

Industries frequently monitored include consulting, retail, e-commerce, construction, wellness, personal services, SaaS, and online education.

STARTUP CHECKLIST: REGISTERING YOUR BUSINESS FOR GST/QST AND MORE

Follow this structured checklist to get your startup compliant from day one.

1. Register your business with the REQ
   File your declaration at the Registraire des entreprises du Québec (REQ). Choose your business structure:
   • sole proprietorship
   • partnership
   • corporation
   • cooperative

2. Obtain your federal business number (BN)
   Required for GST/HST registration, payroll accounts, and income tax filings.

3. Determine if you need to register for GST/QST
   You must register once taxable revenues exceed $30,000. Voluntary registration is beneficial for startups with expenses and B2B clients.

4. Gather information to complete GST/QST registration
   Prepare:
   • business name and address
   • NEQ
   • contact information
   • federal BN
   • business activities description
   • projected revenue
   • ownership structure

5. Register for GST and QST with Revenue Québec
   Registration creates two numbers:
   • GST registration number
   • QST registration number
   Both must appear on all invoices.

6. Set up compliant invoicing templates
   Include:
   • invoice number and date
   • client information
   • description of goods/services
   • GST and QST separately listed
   • your tax registration numbers

7. Configure your accounting software
   Activate GST and QST tax codes. Proper setup prevents reporting errors and incorrect filings.

8. Track and save all receipts and expenses
   Digitize invoices immediately. Ensure they include supplier GST/QST numbers.

9. Separate personal and business finances
   Open dedicated business bank and credit card accounts. Avoid mixing expenses to ensure clean records and valid ITCs.

10. Create a monthly GST/QST reconciliation process
    Reconcile:
    • GST/QST collected
    • input tax credits
    • bank deposits
    • POS reports

11. Prepare for your assigned filing frequency
    Know whether you will file:
    • monthly
    • quarterly
    • annually

Mark due dates to avoid penalties.

12. Understand place-of-supply rules
    These rules determine when to apply GST, QST, or HST — especially important for startups serving out-of-province customers.

13. Perform a pre-filing review before your first return
    Check for:
    • missing invoices
    • misclassified sales
    • incorrect tax coding
    • missing registration numbers on invoices

A first return error often triggers review.

14. Build a tax compliance folder
    Organize:
    • GST/QST returns
    • supporting documentation
    • contracts and invoices
    • reconciliation reports
    • bank statements

15. Consult a CPA for initial setup
    Most startups benefit from early professional guidance to avoid years of corrections.

MACKISEN STRATEGY

Mackisen CPA supports startups from registration through the first filing cycle. We register businesses with Revenue Québec, configure accounting systems, build compliant invoicing templates, and establish reconciliation procedures. Our team ensures you claim all eligible input tax credits and avoid costly errors that could slow growth.

We also provide annual compliance reviews to ensure your startup remains aligned with evolving GST/QST rules as it scales.

REAL CLIENT EXPERIENCE

A Montreal SaaS startup delayed registration and missed out on thousands in input tax credits. Mackisen registered the business, corrected invoices, and recovered money through amended returns.

A wellness startup issued non-compliant invoices without QST. Mackisen corrected all templates, updated their POS system, and prevented a reassessment.

An early-stage consultant exceeded the GST/QST threshold unknowingly. Mackisen prepared backdated filings and minimized penalties.

COMMON QUESTIONS

When should a startup register for GST/QST
As soon as you approach the $30,000 threshold or earlier if beneficial.

Do pre-registration expenses qualify for ITCs
Generally no, unless specific conditions are met. Keep all receipts regardless.

Is accounting software required
Yes. Manual systems create errors and cause denied ITCs.

What if a startup provides services outside Quebec
Place-of-supply rules determine tax obligations. Classification matters greatly.

What happens if a startup file late
Penalties, interest, and increased audit attention.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps startups register, structure, and comply with GST/QST rules from the very beginning. Our expert guidance prevents administrative problems and builds a strong compliance foundation as your business grows.