WHAT RECORDS DO I NEED TO KEEP FOR GST/QST

Keeping the right documents is one of the most important parts of GST/QST compliance in Quebec. Whether you are a freelancer, contractor, retailer, e-commerce seller, or corporation, Revenue Québec can request supporting documents at any time, and failing to produce them can lead to denied input tax credits, penalties, reassessments, or full audits. This guide breaks down exactly which records you must keep, how long you must keep them, and how to organize them to stay audit ready.

Proper recordkeeping protects your business, reduces stress during reviews, and ensures clean, accurate GST/QST filings.

LEGAL AND REGULATORY FRAMEWORK

GST and QST recordkeeping requirements are set out in:

• the Excise Tax Act (GST)
• the Quebec Taxation Act (QST)
• Revenue Québec’s documentation and audit guidelines

Both laws require businesses to keep complete records for at least six years from the end of the year to which they relate.

Records must be:

• complete
• legible
• accessible in Quebec
• organized in a way auditors can understand

KEY COURT DECISIONS

Courts have repeatedly ruled that:

• missing documentation is grounds for denying ITCs/ITRs
• bank statements alone are not valid evidence
• reconstructed records may not be accepted
• illegible or incomplete invoices invalidate tax credits
• bookkeeping delays do not excuse missing documents
• taxpayers must prove entitlement to credits, not Revenue Québec

Judges consistently emphasize that “no receipt = no credit.”

WHAT RECORDS DO YOU NEED TO KEEP FOR GST/QST?

You must keep all documents that support:

• GST/QST collected
• GST/QST paid
• Input Tax Credits (ITCs)
• Input Tax Refunds (ITRs)
• sales
• purchases
• adjustments
• returns
• contracts
• accounting entries

Below is the detailed list.

1. SALES RECORDS (TAXABLE AND EXEMPT)

• invoices issued
• credit notes
• customer contracts
• sales summaries from accounting software
• POS Z-reports
• e-commerce platform reports (Shopify, Amazon, Stripe, PayPal)
• sales logs for manual invoices

Invoices must include:

• GST/QST registration numbers
• tax rate
• tax amount
• customer details
• invoice number and date

2. PURCHASE RECORDS (FOR ITCs/ITRs)

• supplier invoices
• digital receipts
• subscription payments
• bills for subcontractors
• equipment purchases invoices
• vehicle-related receipts (business portion)
• capital asset invoices

Supplier invoices must show:

• GST/QST numbers
• invoice date
• business name
• clear descriptions
• tax amounts

3. BANKING & FINANCIAL RECORDS

• bank statements
• credit card statements
• cancelled cheques
• deposit slips
• loan agreements
• merchant account reports (Square, Moneris, PayPal)

Bank statements alone are not sufficient for tax credits, but they support proof of payment.

4. PAYROLL & CONTRACTOR RECORDS

• T4A slips for contractors
• payroll summaries
• employee reimbursements with receipts
• employment contracts
• timesheets (if relevant to billing)

5. TAX RETURN DOCUMENTATION

• copies of GST/QST returns (FPZ-500-V)
• filing confirmations
• remittance receipts
• adjustment letters
• amended returns
• notices of assessment
• correspondence from Revenue Québec

6. ACCOUNTING RECORDS

• general ledger
• journal entries
• trial balance
• reconciliation reports
• chart of accounts
• bookkeeping worksheets

These records must match your GST/QST return totals.

7. SHIPPING & EXPORT DOCUMENTATION

For zero-rated exports, keep:

• shipping confirmations
• customs export documents
• courier tracking numbers
• foreign customer contracts

Without export documentation, zero-rating may be denied.

8. PROPERTY & RENTAL DOCUMENTS

• lease agreements
• purchase agreements
• renovation contracts
• occupancy permits

These are important for GST/QST on real estate and capital improvements.

HOW LONG MUST YOU KEEP GST/QST RECORDS?

Standard retention period: 6 years

From the end of the year to which the documents relate.

Example:
2024 invoices must be kept until December 31, 2030.

When to keep records longer:

You must keep documents beyond six years if:

• you have filed late returns
• there is an audit underway
• an objection or appeal is in progress
• you have unpaid balances
• you own capital property with tax implications

Do digital records count?

Yes — Revenu Québec accepts digital copies if:

• they are legible
• complete
• readable
• accessible
• stored securely

Screenshots are not valid — the original digital invoice is required.

HOW TO ORGANIZE RECORDS TO BE AUDIT-READY

• Create folders for each GST/QST filing period
• Separate sales, expenses, and adjustments
• Keep digital backups in the cloud
• Use receipt-capture applications
• Reconcile GST/QST monthly
• Maintain an audit-ready binder for each year
• Retain proof of export for foreign sales

An organized system reduces audit time and protects your input tax credits.

COMMON MISTAKES BUSINESSES MAKE

• throwing away small receipts
• failing to download digital invoices
• mixing personal and business expenses
• saving only bank statements
• not keeping POS reports
• deleting old accounting records
• assuming accountants store legal records (you must)

These mistakes often lead to denied credits or audits.

MACKISEN STRATEGY

Mackisen CPA builds complete GST/QST recordkeeping systems for businesses. We:

• set up document retention structures
• implement receipt-capture tools
• reconcile tax accounts monthly
• prepare audit-ready binders
• ensure compliance with retention rules
• fix documentation gaps before audits

Our systems protect you from penalties, denied credits, and audit exposure.

REAL CLIENT EXPERIENCE

A contractor lost thousands in ITRs due to missing invoices. Mackisen helped recover documents from suppliers and rebuild compliance.

A retailer had a refund held because POS and accounting records didn’t match. Mackisen reconstructed documentation and released the refund.

A consultant kept only bank statements. Mackisen implemented a digital recordkeeping system and prevented future issues.

COMMON QUESTIONS

Can I scan my receipts and throw away the originals?
Yes if the digital copy is complete and legible.

Do I need to keep cancelled cheques?
Yes, they support payment evidence.

What if I lose some documents?
Contact suppliers for duplicates immediately.

Does my accountant keep my legal records?
No. You must retain them yourself.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses maintain complete, compliant GST/QST records. Our structured systems ensure audit readiness, protect ITCs/ITRs, and reduce compliance stress.