TOP 5 STEPS WHEN REGISTERING FOR GST/QST IN QUEBEC

Registering for GST and QST is one of the first and most important administrative tasks for any business operating in Quebec. Whether you run a startup, a consulting business, a retail store, or an online company, proper GST/QST registration ensures you can legally charge taxes, issue compliant invoices, and claim input tax credits. Many entrepreneurs delay or incorrectly complete their registration because they underestimate how early the obligation applies. This can lead to penalties, audit exposure, and problems with customers who expect compliant invoices. This guide explains the top five steps when registering for GST/QST in Quebec so that your business starts off on the right foot.

Proper registration is not only a compliance requirement but also a strategic advantage, allowing businesses to recover GST/QST paid on expenses, build customer confidence, and avoid costly retroactive tax issues.

LEGAL AND REGULATORY FRAMEWORK

GST is governed by the Excise Tax Act and QST by the Quebec Taxation Act. Most businesses must register for GST and QST once their worldwide taxable revenues exceed thirty thousand dollars over four consecutive calendar quarters. This threshold applies to both resident and non-resident suppliers. Voluntary registration is permitted before reaching this amount and is often advantageous for businesses with early expenses, capital purchases, or B2B clients.

In Quebec, GST and QST registration is handled through Revenue Québec, which administers both taxes. Once registered, businesses must collect GST and QST on taxable supplies, maintain compliant invoices, and remit tax based on monthly, quarterly, or annual filing frequencies.

KEY COURT DECISIONS

Courts have repeatedly ruled that failure to register for GST/QST on time does not exempt a business from tax obligations. In several cases, taxpayers argued that they misinterpreted the threshold or believed their activities were not taxable. Judges upheld reassessments, confirming that the thirty-thousand-dollar threshold is strictly applied.

Courts also emphasized that invoices issued before registration cannot retroactively include GST/QST unless the customer agrees. Businesses that operated unregistered while making taxable supplies were required to remit GST/QST out of pocket. These decisions highlight the importance of proper and timely registration.

WHY CRA AND REVENU QUÉBEC TARGET REGISTRATION ISSUES

Revenue Québec closely monitors businesses for early-stage compliance because registration mistakes often lead to under-collected taxes, missing remittances, and unsupported credits. Red flags include:
• rapid increases in revenue
• contracts issued without tax numbers
• invoices missing GST/QST details
• large input tax credits claimed before registration
• inconsistent reporting between GST/QST returns and income tax filings

Startups and consultants are especially likely to miss registration deadlines because their revenue increases gradually yet crosses the threshold unexpectedly.

TOP 5 STEPS WHEN REGISTERING FOR GST/QST IN QUEBEC

1. Determine whether you must register
   Calculate your total worldwide taxable revenues over the last four consecutive calendar quarters. If the total exceeds thirty thousand dollars, registration is mandatory. Even if below the threshold, consider voluntary registration if:
   • your customers are mostly businesses
   • you incur significant early expenses
   • you want to claim input tax credits
   • you plan to grow quickly

2. Gather required business information
   To register, have the following ready:
   • legal business name and NEQ (if applicable)
   • business address and contact details
   • federal business number (BN)
   • ownership information (directors, partners, proprietors)
   • expected business activities
   • projected annual revenue
   • preferred filing frequency (monthly, quarterly, or annual)

Accurate information ensures your registration is processed quickly without delays.

3. Register for GST and QST with Revenue Québec
   Registration is completed through Revenue Québec’s online services or via mailed forms. Once approved, you will receive a GST number and QST number. These must appear on all invoices, estimates, contracts, and sales documents. Ensure your invoicing and accounting software are updated immediately to include both tax numbers.

4. Configure your invoicing and accounting systems
   Proper setup prevents future filing errors.
   • Add GST and QST tax codes in your accounting software
   • Create compliant invoice templates
   • Separate taxable, exempt, and zero-rated items
   • Train staff to apply taxes correctly
   • Ensure POS systems recognize Quebec-specific rules

This step is essential before starting to charge customers.

5. Prepare your tax compliance workflow
   New registrants must plan for ongoing compliance:
   • track GST/QST collected vs. paid
   • reconcile tax accounts monthly
   • maintain supporting invoices for input tax credits
   • monitor filing deadlines
   • prepare for quarterly or annual remittances
   • set aside funds for GST/QST payments

A structured workflow ensures clean, audit-ready tax records from day one.

MACKISEN STRATEGY

Mackisen CPA supports businesses through the complete GST/QST registration process. We evaluate whether mandatory or voluntary registration applies, submit applications to Revenue Québec, configure invoicing systems, and establish tax workflows tailored to each business. Our team ensures that your tax numbers are issued quickly and your systems are compliant before your first taxable sale.

We also assist clients in monitoring their revenue levels, preventing delayed registration, and optimizing input tax credit claims. For businesses that registered late, Mackisen helps minimize penalties through corrective filings and voluntary disclosures.

REAL CLIENT EXPERIENCE

A Montreal consultant exceeded the thirty-thousand-dollar threshold without realizing it. Mackisen registered the individual promptly, updated invoices, and corrected past returns before penalties accumulated.

A retail startup attempted to charge GST/QST without a valid registration number. Mackisen completed their registration, configured their POS system, and ensured compliant invoicing going forward.

A construction company registered late and faced retroactive GST/QST obligations. Mackisen prepared adjusted filings and negotiated reduced penalties after documenting the circumstances.

COMMON QUESTIONS

Is voluntary registration beneficial
Often yes. It allows you to recover GST/QST on startup expenses and present professional invoices to business clients.

Can I register without an NEQ
Yes. Sole proprietors can register without incorporating, but an NEQ is needed for most formal registrations.

How quickly will I receive my GST/QST numbers
Usually within a few days if submitted online, but it may take longer if additional verification is required.

What happens if I register late
You may owe uncollected tax retroactively. Penalties can apply unless corrected proactively.

Do I need separate GST and QST registrations
No. Registration with Revenue Québec creates both accounts simultaneously.

WHY MACKISEN

Avec plus de 35 ans d’expérience combinée, Mackisen CPA Montréal aide les entreprises à s’enregistrer correctement pour la TPS/TVQ et à mettre en place des systèmes conformes dès le premier jour. Whether you’re launching a new business or expanding into Quebec, our team ensures full compliance and a smooth registration process.