Who Does What: Revenu Québec vs. CRA for Sales Taxes in Quebec?

Quebec is the only province in Canada where sales tax administration is split between two government bodies: Revenu Québec and the Canada Revenue Agency (CRA). This creates confusion for new entrepreneurs, freelancers, e-commerce sellers, and out-of-province businesses. Many aren’t sure which agency handles GST, which handles QST, where to file returns, or who to contact for audits, refunds, and registrations.

This guide breaks down exactly who does what, so you always know which organization to deal with for every part of GST/QST compliance.

What the CRA Handles (Federal Level)

The CRA is responsible for:
• creating and enforcing the GST/HST rules under the Excise Tax Act
• receiving GST/HST returns for every province except Quebec
• maintaining the federal Business Number (BN)
• administering GST/HST audits outside Quebec
• handling GST/HST objections and appeals

For Quebec businesses specifically, CRA still:
• issues your GST account number (RT0001)
• receives your corporate income tax return (T2)
• oversees GST/HST obligations outside Quebec
• audits national or interprovincial GST matters

However, CRA does not process your GST filings if you operate inside Quebec that job belongs to Revenu Québec.

What Revenu Québec Handles (Provincial Level)

Revenu Québec administers:

1. QST (Quebec Sales Tax)

• registration
• tax collection
• filing
• remittance
• audits
• input tax refunds (ITRs)

2. GST for Quebec Businesses

Under a federal–provincial agreement, Revenu Québec also administers GST for Quebec-based registrants.

This means:
• you file GST + QST together on the FPZ-500-V
• you remit both taxes to Revenu Québec
• GST audits in Quebec are usually conducted by Revenu Québec agents
• GST refunds are released or held by Revenu Québec

Revenu Québec is essentially the “one-stop centre” for all Quebec sales tax operations.

Key Differences Between CRA and Revenu Québec for Sales Tax

CRA (Federal)

Handles GST/HST everywhere except Quebec.
Does not accept GST returns for Quebec businesses.
Handles federal income tax, payroll, and cross-border GST/HST matters.

Revenu Québec (Provincial + GST Administrator for QC)

Handles both GST and QST for Quebec filers.
Conducts almost all sales tax audits in the province.
Processes both refunds and payments.

If your business is in Quebec, nearly all sales tax obligations run through Revenu Québec.

Who Do You File With?

If your business is based in Quebec:

 File GST + QST together with Revenu Québec Do NOT file GST with CRA (unless you operate outside Quebec too)

If your business is outside Quebec:

File GST/HST with the CRA
File QST with Revenu Québec if you sell to Quebec customers and must register

Who Audits You?

For Quebec businesses:

• Revenu Québec audits both GST and QST
• CRA may audit if you have national operations or federal GST/HST issues

For non-Quebec businesses:

• CRA audits GST/HST
• Revenu Québec audits QST if you sell into Quebec

Who Issues Refunds?

• Revenu Québec issues GST and QST refunds for Quebec registrants
• CRA issues GST/HST refunds only for non-Quebec entities
• Refunds may be held depending on documentation quality and risk factors

Who Handles Objections?

GST/HST objections:

• CRA handles objections for GST/HST outside Quebec
• Revenu Québec handles GST objections for Quebec-based businesses

QST objections:

• Always handled by Revenu Québec

Appeals may proceed to separate tribunals depending on the tax type.

Why the System Is Confusing

• Quebec is the only province where the provincial agency administers the federal GST.
• Many businesses think HST applies in Quebec (it doesn’t).
• Some believe GST returns go to CRA (not true for Quebec entities).
• E-commerce platforms often configure GST/HST incorrectly for Quebec users.
• Non-québec sellers may unknowingly have QST obligations.

Understanding the roles prevents filing mistakes and penalties.

Mackisen Strategy

Mackisen CPA helps businesses navigate both systems by:
• registering GST/QST correctly
• configuring accounting systems for Quebec rules
• handling FPZ-500-V filings
• resolving refund holds
• managing audits from either agency
• ensuring compliance for cross-border and interprovincial operations

We act as your single point of clarity between CRA and Revenu Québec.

Real Client Experience

A consultant filed GST with CRA by mistake Mackisen corrected the process and fixed late-filing penalties.

An Ontario business selling subscriptions to Quebec customers failed to register for QST. Mackisen registered them properly and corrected filings.

A retailer’s refund was frozen because Revenu Québec needed documentation for both ITCs and ITRs. Mackisen reconstructed and submitted the full package.

Common Questions

Does CRA handle my GST return if my business is in Quebec?
No Revenu Québec does.

Is Quebec part of the HST system?
No, Quebec uses TPS + TVQ, not HST.

Who do I pay GST to?
If you’re in Quebec: Revenu Québec.

Do I need to register for QST if I’m in Ontario but sell digital services to Quebec?
Yes if you serve Quebec consumers.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal ensures businesses follow the correct processes with both CRA and Revenu Québec, eliminating confusion and protecting you from filing errors and penalties.