Tax Guide for Freelancers and Gig Workers in Quebec: Income Reporting, GST/QST Rules, and Deductible Expenses — CPA Firm Near You, Montreal

Introduction

Freelancers and gig workers in Quebec work across dozens of industries including consulting, design, driving, delivery, writing, tutoring, tech support, wellness, and digital services. Because gig income often comes from multiple platforms with inconsistent reporting, many freelancers underreport revenue or miss key deductions. This guide explains how freelancers must report income, how GST/QST applies, which expenses are deductible, and how a CPA firm near you in Montreal can help ensure full compliance while maximizing tax savings.

Legal and Regulatory Framework

Under the Income Tax Act and the Taxation Act of Quebec, freelancers must report all self-employment income from contracts, platform payouts, commissions, delivery apps, gig platforms, and independent work. GST/QST registration is mandatory once taxable revenue exceeds the small-supplier threshold. Deductible expenses can include equipment, software, supplies, travel, internet, home office expenses, platform fees, marketing, vehicle costs (if applicable), and training. CRA and Revenu Québec require detailed bookkeeping, invoices, and receipts to support all income and expense claims.

Key Court Decisions

Courts have reinforced that freelancers must declare all platform-based income, even when not reported on a T4A. Judges have denied deductions when taxpayers mixed personal and business expenses, did not maintain proper receipts, or claimed vehicle expenses without mileage logs. Several rulings highlight that GST/QST must be charged on taxable services and that unregistered freelancers exceeding the threshold may face backdated assessments and penalties. Documentation and accurate calculations remain central to compliance.

Why CRA and Revenu Québec Target Freelancers and Gig Workers

Freelancers are frequently audited because gig income is often underreported. Auditors compare declared income with payouts from platforms such as Uber, Lyft, SkipTheDishes, DoorDash, Fiverr, Upwork, Airbnb Experiences, and online coaching platforms. Vehicle deductions, home office expenses, and subscription costs are heavily scrutinized due to high error rates. Failure to register for GST/QST once required is one of the most common audit triggers.

Mackisen Strategy

At Mackisen CPA Montreal, we help freelancers create solid financial systems that track income from multiple sources. We determine GST/QST obligations, set up invoicing templates, and build bookkeeping workflows customized to gig activity. We optimize deductions for equipment, travel, supplies, software, home office use, and platform fees. Our team also prepares year-end filings, manages tax instalment planning, and ensures compliance with CRA and Revenu Québec documentation standards. If an audit occurs, we reconstruct income streams, defend deductions, and reduce reassessment risk.

Real Client Experience

A Montreal freelancer earned income from three gig platforms, two consulting contracts, and online coaching but reported only one income stream. CRA flagged discrepancies using platform payout data. We reconstructed all income sources, recalculated GST/QST obligations, organized expenses, and corrected filings. This prevented a costly reassessment and established a fully compliant system moving forward.

Common Questions

Do freelancers need to register for GST/QST?

Yes, once taxable revenue exceeds the small-supplier threshold.

What expenses can freelancers deduct?

Equipment, supplies, software, travel, home office costs, platform fees, and vehicle expenses (with mileage logs) may be deductible.

Are gig platform earnings taxable?

Yes. All platform payouts must be declared as business income.

How should freelancers track multiple income sources?

Use structured bookkeeping systems and keep platform payout statements, invoices, receipts, and mileage logs.

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.