WHAT HAPPENS IF I DON’T FILE MY GST/QST ON TIME?

Missing a GST/QST filing deadline can happen to any business in Quebec — especially during busy seasons, staff shortages, or bookkeeping backlogs. But even a single late filing can trigger penalties, interest, refund delays, and increased audit scrutiny. Many business owners mistakenly believe that filing late “isn’t a big deal” as long as they eventually file. In reality, Revenue Québec’s system automatically flags late filings and may monitor your account more closely afterward. This guide explains exactly what happens when GST/QST returns are not filed on time, and how to prevent future issues.

Understanding the consequences helps protect your business from avoidable financial and administrative problems.

LEGAL AND REGULATORY FRAMEWORK

Under the Excise Tax Act (GST) and the Quebec Taxation Act (QST), registered businesses must:

• file GST/QST returns by their assigned deadlines
• remit taxes collected by the same due date
• submit complete and accurate documentation
• maintain records for six years

Deadlines vary depending on whether you are a monthly, quarterly, or annual filer. Failure to file or remit on time automatically triggers penalties and interest.

KEY COURT DECISIONS

Courts consistently uphold penalties for late GST/QST filings and payments. Judges have ruled that:

• administrative errors do not excuse late filing
• bookkeeping delays are not valid reasons
• cash flow problems do not remove liability
• businesses must manage filing deadlines proactively
• interest is mandatory and cannot be waived unless specific relief criteria are met

In short, the courts reinforce that late filing consequences are strict and unavoidable.

WHY REVENU QUÉBEC MONITORS LATE FILERS

Late filing is a common indicator of deeper issues such as:

• disorganized bookkeeping
• missing invoices
• incorrect tax coding
• poor cash flow management
• inconsistent reporting
• underreported sales
• missing prior filings

Businesses with repeated late filings are more likely to face verification, audits, or account reviews.

WHAT HAPPENS IF YOU DON’T FILE YOUR GST/QST ON TIME?

Below are the consequences businesses face when GST/QST returns are filed late.

1. Filing penalties

Revenue Québec applies penalties for late filing, usually calculated as a percentage of the tax payable. Penalties grow the longer a return remains unfiled.

2. Daily interest charges

Interest begins accruing the day after the due date, even if the return is eventually filed. Interest continues until full payment is made.

3. Refunds are delayed or suspended

If you are expecting a refund, late filing almost always leads to:

• verification requests
• additional documentation requirements
• delayed processing
• withheld refunds until all returns are up to date

Revenue Québec does not release refunds unless your account is fully compliant.

4. Your account is flagged in Revenue Québec’s system

Businesses with late filings often experience:

• more frequent verification letters
• longer processing times
• difficulty obtaining adjustments
• increased likelihood of being selected for audit

5. Missing returns accumulate into a compliance backlog

If you miss multiple periods, Revenue Québec may:

• issue estimated assessments
• send collection notices
• place limits on future refunds
• demand outstanding returns immediately

6. You may owe tax even if you had no sales

Even a “nil return” must be filed. Failing to file leads to penalties, even if the business had zero activity.

7. Interest and penalties affect your cash flow

Late filing creates unexpected obligations that strain finances and increase operating risk.

8. Your business credibility is impacted

Late GST/QST compliance can affect:

• financing applications
• insurance underwriting
• partnership negotiations
• investor due diligence

Consistent tax compliance signals strong financial management.

9. Revenue Québec may take collection action

For long-delayed filings, consequences may include:

• garnishment
• liens
• bank seizures
• offsetting refunds from other programs
• freezing accounts

These actions escalate quickly when a business ignores repeated notices.

HOW TO FIX LATE GST/QST FILINGS

Follow these steps to regain compliance:

1. Gather missing invoices and receipts

2. Reconcile GST/QST collected

3. Reconcile input tax credits

4. Prepare all missing FPZ-500-V returns

5. Submit late filings as soon as possible

6. Arrange payment for outstanding balances

7. Contact Revenue Québec if relief or payment plan is needed

8. Implement a calendar system to prevent future delays

A CPA can help file multiple late periods quickly and accurately.

MACKISEN STRATEGY

Mackisen CPA helps businesses resolve late GST/QST filings by:

• preparing all missing returns
• reconstructing sales and expenses
• reconciling tax accounts
• communicating with Revenue Québec
• negotiating payment arrangements
• preventing penalties through correction strategies

Our team helps you become fully compliant and rebuilds your GST/QST filing system to prevent recurrence.

REAL CLIENT EXPERIENCE

A Montreal construction company missed six quarterly filings. Mackisen reconstructed records, filed all periods, and minimized penalties.

A freelancer missed a refund deadline due to late filing. Mackisen prepared the return and successfully obtained the refund after verification.

A retailer facing collection notices due to late remittances received support from Mackisen to negotiate a payment plan and avoid bank seizure.

COMMON QUESTIONS

Can penalties be waived?
Sometimes, but only under specific relief provisions. A CPA can determine eligibility.

What if I had zero sales?
You must still file. Nil returns are legally required.

Will a late filing trigger an audit?
Possibly — especially if repeated.

Can I catch up on multiple periods at once?
Yes. CPAs regularly do bulk GST/QST catch-up filings.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Quebec businesses manage late GST/QST filings quickly, accurately, and strategically. We restore compliance and protect your business from penalties and audit exposure.