TAX TIME CHECKLIST: GET READY FOR GST/QST FILINGS

Tax season can be overwhelming for Quebec businesses, especially when GST/QST filings must be prepared alongside income tax returns and financial statements. Whether you file monthly, quarterly, or annually, preparing early for your GST/QST return helps avoid mistakes, prevents refund delays, and reduces audit risk. This tax time checklist walks you through everything you need to gather, verify, and review before completing your FPZ-500-V combined GST/QST return.

A structured preparation process keeps your filing accurate, audit-ready, and stress-free — even during the busiest tax season.

LEGAL AND REGULATORY FRAMEWORK

GST obligations fall under the Excise Tax Act, while QST obligations fall under the Quebec Taxation Act. Registered businesses must:
• collect GST and QST on taxable supplies
• file returns by their assigned due dates
• remit tax collected
• claim input tax credits correctly
• retain documentation for at least six years

In Quebec, businesses file GST and QST together using the FPZ-500-V form. Tax time preparation ensures that all reported sales, credits, and adjustments are fully supported by proper records.

KEY COURT DECISIONS

Courts consistently affirm that taxpayers must maintain accurate records and verify sales tax calculations before filing. Judges have upheld reassessments where taxpayers:
• claimed input tax credits without documentation
• misclassified supplies
• filed incomplete or incorrect returns
• used estimates instead of actual numbers

These decisions highlight the importance of preparing GST/QST documents properly before filing.

WHY CRA AND REVENU QUÉBEC TARGET TAX TIME FILINGS

Tax time filings often show discrepancies because businesses rush to complete returns or combine multiple tasks at once. Common red flags include:
• mismatched totals between GST/QST returns and financial statements
• large year-end adjustments
• delayed or missing filings
• unclaimed or unsupported input tax credits
• incorrect tax coding in accounting software

These issues may lead to refund verifications or full audits.

TAX TIME CHECKLIST: GET READY FOR GST/QST FILINGS

Use this step-by-step checklist to stay fully prepared.

1. Gather all sales records
   Collect:
   • POS reports
   • accounting system sales summaries
   • online platform reports (Shopify, Amazon, etc.)
   • manual invoices or receipts
   Separate taxable, exempt, and zero-rated sales.

2. Verify GST/QST collected
   Ensure that GST and QST amounts collected match your accounting system and POS registers. Identify any transactions where tax was overridden or removed.

3. Gather all supplier invoices
   Collect expense invoices showing GST/QST amounts and supplier registration numbers. Document business purpose and ensure receipts are legible and complete.

4. Check for missing receipts
   Identify gaps in your documentation and request duplicates from suppliers before filing. Missing receipts are a major cause of denied input tax credits.

5. Review recurring expenses
   Subscriptions, utilities, software, and telecom expenses often include GST/QST. Confirm that tax is recorded correctly.

6. Confirm capital asset purchases
   Collect invoices for equipment, computers, leasehold improvements, vehicles, and machinery. Many startups and growing businesses forget to claim ITCs on capital purchases.

7. Reconcile GST/QST control accounts
   Ensure tax collected and tax paid match the balances in your general ledger. Unreconciled accounts lead to incorrect filings.

8. Identify adjustments
   Prepare documentation for:
   • credit notes
   • returns
   • rebates
   • discounts
   • bad debts
   • corrections from previous periods
   Include all adjustments in your filing.

9. Match GST/QST with bank deposits
   Ensure your sales deposits match your reported revenue. Prepare explanations for deposits that are not sales (loans, transfers, capital contributions).

10. Review place-of-supply rules
    Ensure tax collected matches the rules for Quebec, HST provinces, GST-only regions, and international customers.

11. Check consistency with financial statements
    Your GST/QST filing should align with your year-end financial results. Differences often require correction.

12. Prepare an audit-ready file
    Create a folder with:
    • sales summaries
    • expense invoices
    • bank statements
    • reconciliations
    • the final FPZ-500-V return
    • payment confirmation
    This protects your business if Revenu Québec requests verification.

13. Plan cash flow for payment
    If a balance is owed, ensure sufficient funds are available. Consider transferring GST/QST to a separate account during the year to avoid shortages.

14. File early if possible
    Avoid last-minute stress, technical issues, and missed deadlines.

MACKISEN STRATEGY

Mackisen CPA assists businesses in preparing accurate and audit-ready GST/QST filings during tax season. We reconcile accounts, verify tax coding, collect missing documentation, and prepare the FPZ-500-V return. Our team corrects prior-year errors and ensures your GST/QST results match your financial statements.

We also help automate tax reporting systems and build customized checklists to improve future filings.

REAL CLIENT EXPERIENCE

A Montreal retailer discovered missing receipts and tax inconsistencies during tax season. Mackisen rebuilt their documentation file and produced a compliant GST/QST return.

A service provider mixed personal and business expenses. Mackisen cleaned up their records, corrected ITC claims, and prepared strong year-end filings.

A fast-growing tech startup saw a spike in GST/QST refund claims. Mackisen verified all documentation and helped secure their refund without delays.

COMMON QUESTIONS

Do I need to prepare anything before filing GST/QST
Yes. Disorganized records lead to incorrect filings and refund issues.

What if I file GST/QST late
Penalty and interest apply, and your file may be flagged for review.

Can missing receipts be used for ITCs
No. You must obtain duplicates to support ITC claims.

Does filing early reduce audit risk
It helps avoid mistakes, but the main factor is accurate documentation and reporting.

Should I reconcile tax monthly even if I file annually
Yes. It reduces year-end workload and errors.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal ensures your GST/QST filings during tax season are accurate, compliant, and audit ready. We support businesses with reconciliation, documentation, and expert guidance to prevent costly mistakes.