Posted on August 20th, 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 on e-commerce.

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 Quebec, nor do they carry on a business in Quebec.
  2. Are not currently registered for the GST/HST or QST.
  3. Have made supplies of services or digital goods to individual consumers.
  4. The value of such taxable supplies exceeds $30,000 over previous 12 months.

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 Quebec, nor do they carry on a business in Quebec.
  2. Are not currently registered for the QST.
  3. Have made supplies of services or digital goods to individual consumers.
  4. The value of such taxable supplies exceeds $30,000 over previous 12 months.

RSM Canada has also provided some important takeaways for consideration.

Article from RSM Canada referenced with permission as a member of RSM Canada Alliance.