Posted on April 4th, 2019 in Manufacturing & Distribution, Commodity Tax (HST)

Suppliers Outside of Quebec Must Now Collect QST

Suppliers Outside of Quebec Must Now Collect QST

On March 27, 2018 the Minister of Finance announced the creation of a new Québec sales tax (QST) registration service to ensure tax fairness for suppliers outside Québec and Québec businesses with regard to the collection of the QST in ecommerce.

Both foreign and Canadian suppliers (including digital platforms that act as intermediaries between suppliers and consumers) must register to be compliant.

Foreign Suppliers

Mandatory registration was required by January 1, 2019 for suppliers outside Canada that meet the following conditions:

  1. Do not have any establishments in Canada, nor do they carry on a business in Canada.
  2. Are not currently registered for the QST or GST/HST.
  3. Profits are equal to or more than $30,000 per year in supplies of services or incorporeal movable property in Québec to consumers, other than via certain digital platforms.

Canadian Suppliers

Registration using the new system is mandatory for Canadian suppliers outside of Québec by September 1, 2019, if they meet the following conditions:

  1. Do not have any establishments in Québec, nor do they carry on a business in Canada.
  2. Are not currently registered for the QST.
  3. Are currently registered for the GST/HST.
  4. Profits are equal to or more than $30,000 per year in supplies of services or incorporeal movable property in Québec to consumers, other than via certain digital platforms.

If you need assistance in determining if you are eligible or registering, please don’t hesitate to contact our Commodity Tax team.