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Tax calculator — Quebec — GST & QST

Calculate GST and QST for Quebec residents.

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GST & QST — Quebec

In Quebec, most goods and services supplied in the course of a commercial activity are subject to GST (5%) and QST (9.975%), subject to exceptions. This guide, inspired by Revenu Québec’s IN-203 (2023-02), covers: definitions, registration (including the $30,000 small-supplier threshold), supply classification (taxable, zero-rated, exempt), charging and calculating tax, time of supply, invoice requirements, ITCs/RITCs, simplified (GST) and quick (QST) methods, returns/payments, penalties/interest, and special cases (ride-sharing, tires, tobacco, vehicles, NPOs), including practical notes for freelancers and self-employed individuals.

Definitions and scope​

Definitions

  • GST: 5% federal tax on the value of taxable supplies (goods and services).
  • QST: Quebec sales tax at 9.975% on the same taxable supplies located in Quebec.
  • Supply: sale, lease, licence, or performance of a service.
  • Person: individual, corporation, organization, trust, etc.
  • Commercial activity: activities that give rise to taxable supplies (including zero-rated), usually carried on regularly.

Geographic scope (place of supply)

  • QST applies to supplies of goods/services located in Quebec.
  • GST generally applies across Canada (HST rules apply in some provinces).
  • Place of supply depends on the type of transaction (tangible goods, services, real property, delivery, installation, customer address, etc.).

General rule

  • By default, a supply is taxable (GST + QST) unless it is expressly zero-rated or exempt.
  • Classification drives tax collection and ITC/RITC eligibility.

Supply classification (taxable, zero-rated, exempt)​

Taxable (GST 5% + QST 9.975%)

  • Common goods and services in a commercial activity: retail, professional services, IT, design, marketing, food service, lodging, fuel, clothing, equipment, commercial rent, etc.

Zero-rated (0%)

  • Some goods/services are taxable at 0% (e.g. certain exports, specific prescribed supplies).
  • No tax is collected, but related inputs may still yield ITCs/RITCs because the activity remains “taxable” at 0%.

Exempt

  • Special categories (e.g. certain financial services, some residential rents, health/education in specific conditions).
  • No tax collected and, generally, no ITCs/RITCs on inputs used exclusively in exempt activities.

Tax registration (including “small supplier”)​

Small supplier ($30,000 threshold)

  • A person whose total taxable supplies (including zero-rated) do not exceed $30,000 in a given calendar quarter nor in the sum of the four previous calendar quarters is a small supplier.
  • Exclusions apply (e.g. sale of capital property).
  • Ceasing to qualify:
    • If the threshold is exceeded in one quarter, small-supplier status ends immediately (supplies causing the excess and later supplies become taxable).
    • If exceeded over four quarters, status ends at the end of the following month.
  • A small supplier may voluntarily register (but must then collect/remit for at least one year).

Mandatory registration (examples)

  • Taxi / ride-sourced transport: registration required regardless of amounts.
  • Certain sectors (e.g. new tire retailers, tobacco, road vehicles other than capital property) have specific obligations.

Practical tips (freelancers / self-employed)

  • Track taxable sales monthly and projected pipeline to anticipate threshold dates.
  • If registering voluntarily: update quotes, contracts, and invoice templates (tax mentions, GST/QST numbers).

Charging and calculating tax (display, rounding, two methods)​

Informing the customer

  • Clearly indicate GST/QST on the invoice, contract, or display (if “plus tax”, show rates; if “tax included”, state it and show tax breakdown on the invoice).

Two accepted calculation methods

  1. Two-step
    • GST (5%) on the price.
    • QST (9.975%) on the price (not on price + GST).
    • POS systems may use 9.97% rounding if equipment cannot use three decimals; invoices should still reference 9.975%.
  2. One-step
    • Apply a combined 14.975% rate — display must still break out 5% and 9.975% on the invoice; do not show a rounded “combined rate” as the only rate line.

Rounding

  • Amounts ≥ 0.005 round to $0.01.
  • Taxes may be computed on the invoice total rather than line-by-line, then rounded.

Time of supply (when to charge tax)​

  • Tax is generally payable on the earliest of:
    • delivery of goods or performance of services (or portion delivered/billed),
    • payment received,
    • invoice date.
  • For milestone or progress billing, charge as deliveries or payments occur.
  • Reimbursed expenses may need different treatment (agent vs principal).

Minimum invoice contents​

  • Supplier legal name and contact; GST and QST numbers if registered.
  • Invoice date; unique identifier.
  • Customer name (as required).
  • Clear description, quantities, unit prices, discounts.
  • GST and QST shown separately with amounts.
  • Subtotal, GST, QST, total payable.
  • Useful: payment terms, late fees, delivery, warranty, IP licences, etc.

ITCs (GST) & RITCs (QST)​

General principles

  • ITCs and RITCs recover tax paid on inputs used to make taxable supplies (including zero-rated).
  • No ITCs/RITCs on inputs used only in exempt activities.
  • Mixed inputs may require a reasonable prorated allocation.

Common eligible expenses (if linked to taxable activity)

  • Equipment, software/SaaS, subcontractors, business insurance, bank fees tied to operations, marketing, travel, commercial rent, etc.
  • Capital property: specific rules and adjustments.
  • Home office: prorated by area and actual business use.

Records

  • Keep compliant invoices, payment proof, contracts, purchase orders.
  • Use a chart of accounts with tax codes (GST, QST, non-taxable) and periodic reconciliations.

Special methods (simplified GST / quick QST)​

Simplified method (ITCs) — GST

  • Simplifies ITC calculation for eligible businesses using percentages by activity type.
  • Eligibility, elections, and formulas must be followed.
  • Pros: less line-by-line tracking; cons: may be less precise.

Quick method — QST

  • For eligible businesses (thresholds), simplifies net QST by applying a quick rate instead of tracking every RITC.
  • You still collect regular QST (9.975%) from customers.
  • Evaluate against your margin and input mix.

Returns, reporting periods, and payments​

Frequency (assigned by the tax authorities based on volume)

  • Monthly, quarterly, or annual.
  • Frequency may change if revenue changes.

Deadlines and methods

  • Electronic filing encouraged (My Business Account / online services).
  • Payment due with the return (bank transfer, etc.).
  • Instalments in some situations.

Corrections

  • File amended returns or adjust subsequent periods per applicable rules.
  • If you retroactively exceed the $30,000 threshold, regularize (taxes, interest).

Penalties and interest​

  • Interest on late payment.
  • Penalties for late filing, failure to register when required, failure to collect/remit, inaccurate information, poor records.
  • Voluntary disclosure may reduce impact.

Special sectors​

Ride-sourced / taxi transport

  • Mandatory registration even below the small-supplier threshold.
  • GST/QST on trips; manage platform fees, commissions, disbursements, and statements.

Road vehicles / new tires / tobacco

  • Specific charging and reporting rules (eco fees, excise, etc.).
  • If you sell these goods (other than capital property), check additional obligations.

NPOs / charities

  • Distinct rules with exemptions or partial taxation by activity; verify registration, ITCs/RITCs, and rebate programs.

E-commerce / digital services

  • Place of supply and registration can depend on customer location, service type, and presence in Quebec (including simplified registration for non-residents).

Good practices (freelancers, self-employed, small business)​

  • Use templates (quotes, contracts, invoices) with GST/QST mentions and numbers.
  • Track the $30,000 threshold; plan registration date and client communications.
  • Bookkeeping with tax codes; reconcile bank and GST/QST accounts.
  • Keep complete records for ITCs/RITCs.
  • Assess simplified/quick methods against your margins.
  • Calendar filing and payment deadlines.
  • When in doubt on classification (exempt vs zero-rated vs taxable), document your analysis or seek advice.

Quick checklist​

  • Status: small supplier or registered (GST/QST).
  • GST/QST numbers active; online profiles updated.
  • Templates for quotes/contracts/invoices (rates, wording, numbers, contact info).
  • Calculation method (one-step 14.975% or two-step 5% + 9.975%), rounding.
  • Books: chart of accounts, tax codes, sales/purchase registers.
  • ITCs/RITCs: rules, proration for mixed inputs, compliant invoices.
  • Reporting period and reminders.
  • Special sectors (ride-sharing, tires, tobacco, NPOs) reviewed.
  • Secure archiving and audit trail.

Disclaimer and source​

This content summarizes rules from Revenu Québec’s official document IN-203 (2023-02) (General information on QST and GST/HST). If there is a conflict or your situation is special (non-residents, platforms, capital property, NPOs), official sources and Revenu Québec guidance prevail.