Ultimate Year-End GST/QST Checklist for Quebec Businesses — Montreal CPA Firm Near You

Introduction
As the year draws to a close, every Quebec business must take a closer look at its GST (Goods and Services Tax) and QST (Quebec Sales Tax) compliance. Year-end is not just about filing one more return — it’s your opportunity to reconcile, correct, and optimize your tax position before Revenu Québec or the CRA (Canada Revenue Agency) spot discrepancies.

At Mackisen CPA Montreal, we’ve developed the Ultimate Year-End GST/QST Checklist to help Quebec businesses ensure accuracy, compliance, and audit readiness. Following this step-by-step checklist will help you close the fiscal year with confidence, knowing your books and tax filings are in perfect order.

✅ 1. Confirm Your GST and QST Registration Details

☑ Verify that your business is properly registered:

• GST registration number (CRA): 9 digits + RT0001 (e.g., 123456789RT0001).

• QST registration number (Revenu Québec): “TQ” prefix + 10 digits (e.g., TQ1234567890).

☑ Check that:

• Your legal business name and address are up to date.

• All registration numbers appear correctly on invoices and contracts.

• No accounts have been mistakenly closed or duplicated.

Mackisen Tip: If you changed your business structure (e.g., incorporation, merger), re-confirm both registrations with CRA and Revenu Québec immediately.

✅ 2. Reconcile GST/QST Collected vs. Payable Accounts

☑ Compare your tax collected (on sales) to your tax payable in your general ledger.
☑ Review your accounting software reports (QuickBooks, Sage, Xero):

• “GST/HST Summary” and “QST Payable” reports should match your filed returns.
  ☑ Investigate differences caused by:

• Manual journal entries.

• Unposted invoices or receipts.

• Credit notes or refunds issued late.

Goal: End-of-year reconciliation ensures your tax liability equals your true sales activity and prevents audit adjustments.

✅ 3. Reconcile Input Tax Credits (ITCs) and Input Tax Refunds (ITRs)

☑ Review all business expenses where GST/QST was paid.
☑ Verify supplier invoices show valid GST and QST registration numbers.
☑ Ensure every eligible expense was claimed as an ITC (for GST) or ITR (for QST).

Examples of eligible expenses:

• Rent, utilities, and insurance.

• Office supplies, marketing, and software.

• Professional fees (lawyers, accountants).

• Vehicle and fuel expenses (if used for business).

Note: Non-deductible expenses (meals, entertainment, personal costs) cannot be claimed in full.

✅ 4. Match All Filed Returns to Accounting Records

☑ Compare each GST/QST filing confirmation with your accounting software’s tax summary.
☑ Review the FPZ-500-V (QST return) and GST34 (CRA return) for the year.
☑ Verify that all payments made are reflected in your tax payable accounts.
☑ Ensure prior period adjustments (e.g., amended returns) have been posted properly.

Audit-Proof Practice: Keep a year-end reconciliation sheet summarizing:

✅ 5. Verify Exempt and Zero-Rated Sales

☑ Review your invoices for:

• Exempt sales (no tax charged, no ITC/ITR claimable) — e.g., residential rent, insurance.

• Zero-rated sales (0% tax, ITC/ITR claimable) — e.g., exports, basic groceries, medical devices.
  ☑ Confirm that these transactions were coded properly in your accounting system.

Common mistake: Misclassifying zero-rated sales as exempt — leading to lost ITCs/ITRs.

✅ 6. Review Year-End Adjustments and Credit Notes

☑ Ensure all returns, discounts, and cancellations are recorded.
☑ For refunded sales, verify that GST/QST collected has been reduced in your records.
☑ For supplier credits, reduce ITCs/ITRs claimed accordingly.

Documentation to keep:

• Credit notes issued.

• Refund receipts.

• Adjusted invoices and supporting correspondence.

✅ 7. Verify Accounts Receivable and Payable for Tax Accuracy

☑ Review outstanding Accounts Receivable (A/R) — ensure all invoices include correct GST/QST.
☑ Review outstanding Accounts Payable (A/P) — confirm supplier invoices properly include or exclude GST/QST as appropriate.
☑ Identify invoices that cross fiscal years (December vs. January) and apply correct filing period for the taxes.

✅ 8. Check Filing Frequency and Deadlines for the Next Year

☑ Confirm your reporting frequency with CRA and Revenu Québec:

• Annual, quarterly, or monthly, based on total sales.
  ☑ Adjust if your sales volume has changed significantly.
  ☑ Update your business calendar with all 2025 filing and payment dates.

Mackisen Tip: Set automatic email or calendar reminders 10 days before each due date to avoid late filing penalties.

✅ 9. Ensure All Tax Payments and Refunds Are Accounted For

☑ Review all tax-related payments to CRA and Revenu Québec.
☑ Confirm they are posted in your accounting software under the correct liability accounts.
☑ Reconcile any year-end refunds received.

Bank Reconciliation Check:

• All CRA/ARQ payments appear on bank statements.

• Refunds are recorded in income or contra-tax accounts correctly.

✅ 10. Prepare for Possible Audits or Inquiries

☑ Compile an Audit-Ready Binder (digital or paper) containing:

• All invoices, receipts, and tax reports.

• Proof of payment and filing confirmations.

• GST/QST reconciliation worksheets.

• Supplier registration verification screenshots.

☑ Review Revenu Québec’s audit focus areas:

• Large ITC/ITR claims.

• Frequent amendments or credits.

• Missing invoices or incorrect coding.

Legal Reminder:
Revenu Québec and CRA can audit up to four years after the last notice of assessment.

Jurisprudence and Legal Insight
Canadian courts have reaffirmed that accurate recordkeeping is key to compliance:

• Hickman Motors Ltd. v. Canada (SCC 1997) — taxpayers must prove accuracy of returns.

• Canderel Ltd. v. Canada (SCC 1998) — filings must reflect economic reality.

• Lac d’Amiante du Québec Ltée (SCC 2001) — Revenu Québec can demand supporting records for all tax credits.

Proper year-end reconciliation protects you from reassessments and penalties.

Winning With CRA and Revenu Québec
At Mackisen CPA Montreal, we ensure every client closes the year with tax confidence:

1. Year-End Reconciliation – We balance GST/QST accounts across all returns.

2. Adjustment Review – We identify and correct missed credits or underpayments.

3. Audit Preparation – We create audit-ready documentation files.

4. Next-Year Planning – We forecast filing dates and optimize cash flow for tax payments.

Mackisen Service Hub: Year-End Tax Compliance Simplified
Our Mackisen Service Hub provides complete GST/QST year-end support:

• Annual reconciliation and verification.

• Filing and remittance accuracy checks.

• Documentation archiving and audit defense.

• Advisory for next-year rate changes or filing updates.

Our bilingual CPA auditors and tax lawyers — educated at McGill, Université de Montréal, and Concordia University — provide detailed, professional guidance for Quebec businesses of all sizes.

Real Client Example
A Montreal manufacturer discovered a $36,000 QST discrepancy during year-end reconciliation. Mackisen CPA traced the error to supplier credits not applied, filed corrected returns, and recovered the full overpayment from Revenu Québec. The company now uses Mackisen’s quarterly review system for continuous compliance.

Why Mackisen
With over 35 years of combined CPA and legal experience, Mackisen CPA Montreal ensures that your year-end GST/QST reconciliation is accurate, compliant, and fully documented.

When you close your fiscal year with Mackisen, your books are clean, your filings are precise, and your business stands ready for growth — with complete confidence in your compliance.