WHY DID REVENU QUÉBEC SEND ME A REFUND CHEQUE

Opening your mail and finding an unexpected refund cheque from Revenue Québec can be confusing — and sometimes stressful. Did you overpay? Was it a mistake? Is it a refund you were expecting but forgot about? Businesses receive QST or GST/QST refund cheques for several reasons, and understanding them helps you keep your books clean, avoid cash flow surprises, and ensure there are no hidden issues in your tax account.

This guide explains the most common reasons businesses receive refund cheques from Revenue Québec — and what you should do next.

LEGAL AND REGULATORY FRAMEWORK

Refunds from Revenue Québec are governed by:

• the Excise Tax Act (GST)
• the Quebec Taxation Act (QST)

Revenue Québec issues refunds when:

• your FPZ-500-V return shows a credit balance
• adjustments or corrections result in an overpayment
• past periods are reconciled
• ITCs/ITRs exceed GST/QST collected
• payments were misapplied or duplicated

Refunds can also be triggered by voluntary disclosure corrections or system recalculations.

KEY COURT DECISIONS

Courts have clarified that:

• Revenue Québec may issue refunds even without a formal refund claim
• taxpayers must verify refund accuracy because errors do occur
• once a refund is issued, Revenue Québec can later reassess if the refund was incorrect
• refund cheques do not exempt taxpayers from future audits
• documentation must support all ITC/ITR claims that generated the refund

Refunds are not a guarantee that your filings were perfect — they simply reflect current account balances.

WHY DID REVENU QUÉBEC SEND YOU A REFUND CHEQUE?

Here are the most common reasons.

1. You claimed more ITCs/ITRs than GST/QST collected

If your expenses with GST/QST exceed the tax you collected from customers:

• GST/QST return shows a refund
• Revenue Québec issues a cheque or direct deposit

This is common for:

• startups
• construction businesses
• high-expense service businesses
• e-commerce sellers
• companies purchasing equipment

2. You overpaid your GST/QST account

This happens when businesses:

• remit the wrong amount
• make double payments
• use the wrong reference number
• pay for the wrong period
• send a payment through online banking twice

When Revenue Québec reconciles your account, it issues a refund for the overpayment.

3. A previous notice of assessment was reversed or adjusted

If Revenue Québec reviewed your account and reduced:

• penalties
• interest
• estimated assessments
• tax payable

You may receive a refund cheque reflecting the correction.

4. You filed an adjustment or amended a return

Corrections to a GST/QST return often result in:

• increased credits
• reduced tax payable
• elimination of errors

If the adjusted return shows a credit, Revenue Québec issues a refund.

5. You qualified for special rebates or credits

Certain entities qualify for rebates:

• charities
• public service bodies
• municipal or school organizations
• qualifying government entities

Refunds may include GST/QST public service body rebates.

6. Refund from past-year reconciliation

Sometimes, the refund relates to:

• credits carried forward
• previous periods filed late
• adjustments identified during a review

These refunds are processed in the background and appear without warning.

7. System corrections or account clean-up

Occasionally, Revenue Québec performs internal reconciliations.
If they discover:

• a duplicate charge
• a misallocated payment
• a technical error

Your business may receive a refund automatically.

8. Refund after voluntary disclosure program (VDP) correction

If you corrected past GST/QST errors using the VDP:

• refunds may be issued
• interest relief may reduce amounts owing

WHAT YOU SHOULD DO IMMEDIATELY AFTER RECEIVING A REFUND

Step 1 — Match the refund to a specific period or filing

Review your:

• recent GST/QST returns
• payment history
• adjustments
• notices of assessment
• accounting records

Determine exactly what the refund corresponds to.

Step 2 — Check your Mon Dossier account

Revenue Québec often posts:

• refund explanations
• new notices
• corrected statements
• adjustments

Step 3 — Deposit the cheque (but track it!)

Deposit it into your bank account, but record:

• refund amount
• corresponding period
• exact reason (if known)

This is essential for correct bookkeeping.

Step 4 — Verify that the refund is correct

Mistakes are rare — but they happen.
If the refund seems suspicious or unusually large, ask a CPA to verify.

Step 5 — Prepare for possible verification

Large refunds often trigger:

• document requests
• ITC/ITR reviews
• audit notices

Keep documentation in your audit-ready folder.

COMMON MISTAKES BUSINESSES MAKE WITH REFUNDS

• assuming a refund means everything is correct
• failing to verify the refund source
• not recording the refund in the correct accounting period
• spending the refund before confirming accuracy
• ignoring potential filing mistakes
• assuming refunds are tax-free revenue (they are not)

MACKISEN STRATEGY

Mackisen CPA verifies GST/QST refunds, identifies their origin, reconciles accounts, and corrects any underlying issues. We ensure the refund is legitimate and help prepare documentation if Revenue Québec requests verification. Our support protects your business from future adjustments or audits.

REAL CLIENT EXPERIENCE

A startup misunderstood a large refund and spent it immediately. Mackisen discovered it was due to a filing error, preventing future reassessment.

A contractor received a refund after overpaying QST for three months. Mackisen reconciled their account and corrected POS tax coding.

An e-commerce seller received a refund due to recalculated ITCs. Mackisen prepared an audit file and the review closed with no adjustments.

COMMON QUESTIONS

Is a refund cheque always good news?
Usually but verify it. Some refunds precede verification.

Do I need to pay tax on the refund?
No it is a tax adjustment, not income.

Why didn’t Revenue Québec send an explanation?
Sometimes explanations are only in Mon Dossier.

Can Revenue Québec take the refund back?
Yes if it was issued in error or if future assessments apply.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses interpret, verify, and reconcile GST/QST refunds. We ensure refund accuracy, documentation readiness, and full compliance.