TVQ (QST) CHECKLIST FOR NEW QUEBEC ENTREPRENEURS

Starting a business in Quebec means learning how to navigate the province’s unique sales tax system. The Quebec Sales Tax (TVQ/QST) is mandatory for most businesses once they exceed the thirty-thousand-dollar annual revenue threshold — and many entrepreneurs must register even earlier if they offer taxable services or goods in Quebec. This checklist for new Quebec entrepreneurs explains exactly what steps you must take to stay compliant, avoid penalties, and organize your records properly from day one.

A strong understanding of QST obligations gives new business owners financial clarity, prevents administrative mistakes, and builds the foundation for long-term compliance with Revenu Québec.

LEGAL AND REGULATORY FRAMEWORK

The TVQ/QST is governed by the Quebec Taxation Act. Any business supplying taxable goods or services in Quebec must register for QST once it exceeds thirty thousand dollars in worldwide taxable revenues over the last four consecutive calendar quarters. Voluntary registration is also permitted and often recommended because it allows entrepreneurs to claim input tax refunds on startup expenses.

QST is administered directly by Revenu Québec, who also handles GST filings for Quebec businesses. Once registered, a business must collect QST on taxable supplies, issue compliant invoices, file periodic returns (monthly, quarterly, or annually), and remit QST collected by the deadline.

KEY COURT DECISIONS

Courts in Quebec consistently affirm that new entrepreneurs must comply with QST rules even when they are unfamiliar with tax requirements. In several rulings, business owners argued they were unaware of the registration threshold or assumed their activities were exempt. Judges upheld QST reassessments, confirming that compliance is mandatory regardless of the business’s size or age.

Courts also denied QST input tax refunds when entrepreneurs could not provide proper invoices or documentation. These cases highlight the importance of structured record-keeping from the first day of operations.

WHY REVENU QUÉBEC FOCUSES ON NEW ENTREPRENEURS

New entrepreneurs frequently make early mistakes such as:
• delaying QST registration
• issuing invoices without tax numbers
• misclassifying sales as exempt
• failing to claim available input tax refunds
• losing receipts or storing them improperly
• using unconfigured POS systems
These errors often attract attention from Revenu Québec and can delay refunds or trigger reviews.

Startups in consulting, retail, construction, wellness, transport, technology, and online sales are especially prone to early compliance issues.

TVQ (QST) CHECKLIST FOR NEW QUEBEC ENTREPRENEURS

Follow this checklist to start on the right foot.

1. Determine if you must register for QST
   Monitor your revenue from day one. If your taxable revenues exceed thirty thousand dollars in four consecutive quarters, registration is mandatory. Voluntary registration may benefit entrepreneurs with significant expenses.

2. Gather information needed for registration
   Have ready:
   • legal business name
   • NEQ (if incorporated or registered)
   • business address and phone number
   • federal business number
   • business structure details (sole proprietor, partnership, corporation)
   • projected revenue and business activities
   This ensures fast, error-free registration.

3. Register for QST and GST through Revenu Québec
   Registration creates two accounts:
   • a QST number
   • a GST number
   Both must appear on invoices, estimates, and sales documents.

4. Configure your invoicing system
   Ensure invoices show:
   • QST and GST amounts separately
   • your registration numbers
   • clear descriptions of goods/services
   • invoice date and unique invoice number
   Compliant invoicing prevents customer disputes and protects their credits.

5. Set up your accounting software correctly
   Activate QST and GST tax codes. Ensure products and services are classified properly as taxable, exempt, or zero-rated. Proper setup reduces filing errors later.

6. Track and save all expense invoices
   Input tax refunds require complete documentation, including supplier QST numbers and tax breakdowns. Keep each receipt digitally or physically.

7. Separate business and personal expenses
   Open dedicated bank and credit card accounts for business use. Personal expenses should never be included in QST claims.

8. Create a monthly reconciliation routine
   Each month, reconcile:
   • sales totals
   • QST/GST collected
   • input tax refunds
   • bank deposits
   This reduces problems when filing returns.

9. Learn about place-of-supply rules
   These rules determine which tax applies to sales inside and outside Quebec. Mistakes are common when selling to other provinces or international clients.

10. Prepare for periodic filings
    Mark your deadlines based on your assigned filing frequency (monthly, quarterly, or annual). Late filings lead to penalties and interest.

11. Build an audit-ready documentation file
    Organize:
    • sales reports
    • supplier invoices
    • contracts
    • bank statements
    • QST/GST reconciliation
    • copies of FPZ-500-V returns
    This ensures quick responses if Revenu Québec requests verification.

12. Review compliance annually
    Revisit your QST processes each year to ensure systems are still accurate as your business grows.

MACKISEN STRATEGY

Mackisen CPA helps new Quebec entrepreneurs set up strong QST systems from the start. We manage your GST/QST registration, configure software, design invoicing templates, and establish monthly reconciliation routines. Our team provides training, documentation checklists, and ongoing support to ensure full compliance.

We also monitor your startup’s growth so that registration deadlines and filing obligations are never missed.

REAL CLIENT EXPERIENCE

A Montreal consultant exceeded the registration threshold unknowingly. Mackisen completed registration, corrected early invoices, and recovered missed input tax refunds.

A wellness startup mixed personal and business expenses. Mackisen created a clean accounting structure and ensured proper QST claims.

A retail entrepreneur misconfigured their POS system, charging GST but not QST. Mackisen corrected coding and avoided a costly reassessment.

COMMON QUESTIONS

Should I register for QST before passing $30,000
Often yes. Voluntary registration lets you recover QST on expenses and avoids registration delays.

Can I charge QST without a registration number
No. You must obtain valid numbers first.

Do digital invoices count for QST
Yes. If they contain required legal information.

Is QST the same as GST
No. They are separate taxes, but both must be collected in Quebec.

What if I file late
Penalties and interest apply. Repeated late filings increase audit risk.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps new Quebec entrepreneurs comply with QST rules from day one. Our structured systems protect your business from penalties, errors, and missed opportunities for input tax refunds.