Skip to main content

FLEA MARKETS

Source and warning

This content is an independent and unofficial reformulation of the publication from Revenu Quebec: IN-255(2020-07).pdf . It is provided for information purposes only and does not constitute legal, tax, or professional advice. For any decision, refer to the official document.

Who this document is for​

This document is intended for people and organizations related to a flea market, including:

  • people who rent space in a flea market in order to:

  • offer services there;

  • sell used goods there;

  • sell new merchandise there;

  • people or entities that operate a flea market, whether:

  • permanently;

  • temporarily. The document therefore applies to both occupants and operators of flea markets. In this context:

  • an occupant is a person who, in a flea market:

  • sells new goods;

  • sells used goods;

  • provides services;

  • an operator is the person who makes locations or spaces available to occupants. Examples of services offered by an occupant may include:

  • hairdressing;

  • aesthetic services;

  • watch repair services;

  • jewelry repair services;

  • computer repair services. The document also states that the masculine form is used only to simplify drafting and that it applies equally to women and men.

Context and purpose​

This publication explains the main tax and administrative obligations applicable to flea markets in Quebec. It clarifies the responsibilities:

  • of operators who make spaces available to occupants;
  • of occupants who use these spaces to sell goods or offer services;
  • of people who carry on business activities in this context. The document deals in particular with:
  • the monthly return that the operator must file;
  • the information that the occupant must provide to the operator;
  • the posting of the list of occupants;
  • the penalties that apply in the event of an omission;
  • the rules relating to GST and QST;
  • income tax on business income;
  • obligations when hiring staff;
  • record keeping and retention. It also distinguishes business activities from occasional sales of personal items that are no longer used.

Complete and detailed information​

Definitions used in the document​

Occupant​

An occupant is a person who uses space in a flea market to carry out one of the following activities:

  • sell new merchandise;

  • sell used merchandise;

  • provide services. The services given as examples in the document include:

  • hairdressing;

  • aesthetics;

  • watch repair;

  • jewelry repair;

  • computer repair.

Operator​

An operator is the person who offers or makes available to occupants the spaces used in the flea market.

Obligations of the operator of a flea market​

Monthly filing of a return​

The operator must send Revenu Quebec, once a month, a return containing:

  • the list of occupants of the flea market;
  • other required information about the market and the occupants. This return must be filed using the following form: | Form | Number | |---|---| | Return concerning flea markets and similar businesses | VD-350.44 | The operator may also use a facsimile of this form.

Filing deadline​

Form VD-350.44 or its facsimile must be sent no later than:

  • the 14th day of the month following the month covered by the return. For example, if the return covers a given month, it must be filed no later than the 14th day of the following month.

Receipt or obtaining of form VD-350.44​

If the operator is registered for the Quebec Sales Tax file, or QST, Revenu Quebec sends the form by mail. However, this form is not sent automatically to an operator who is considered a small supplier. The concept of small supplier is linked to the tax rules and is based on the taxable sales threshold of $30,000, described later in the section on taxes.

Public posting of the list of occupants​

In addition to sending the list of occupants to Revenu Quebec, the operator must also post a list accessible to the public. This posted list must contain only:

  • the names of the occupants. It must therefore not contain the other information sent to Revenu Quebec, such as the address, social insurance number, or QST-related numbers. The list of occupants must be posted:
  • at the operator's main establishment;
  • in a place easily accessible to people who frequent the flea market.

Penalty imposed on the operator​

The operator is liable to a penalty if they fail:

  • to send form VD-350.44;
  • or to post the list of occupants for public view. The applicable penalty is: | Failure | Penalty | |---|---:| | Failure to send form VD-350.44 or failure to post the list of occupants | $100 per day | This penalty applies for as long as the omission continues.

Obligations of the occupant of a flea market​

Information to provide to the operator​

The occupant must provide certain information to the operator so that the operator can:

  • complete form VD-350.44;
  • prepare the list of names of the occupants of the flea market. The information to be provided includes in particular:
  • the occupant's name;
  • their address;
  • their social insurance number;
  • the business name of their enterprise, if applicable;
  • their Quebec enterprise number, or NEQ, if applicable;
  • their QST identification numbers, if applicable;
  • their QST account numbers, if applicable.

Penalty imposed on the occupant​

If the occupant does not provide the required information to the operator, they may be penalized. The penalty is:

FailurePenalty
Information not provided to the operator$100 per missing item of information
The penalty is therefore calculated separately for each item of information that was not provided.

Tax obligations applicable to business activities​

Tax obligations may apply to both:

  • the operator of a flea market;
  • the occupant of a flea market. They apply when the person carries on business activities in this context. The document groups these obligations around four themes:
  1. taxes;
  2. income tax;
  3. hiring staff;
  4. record keeping.

Occasional sale of personal items​

The occasional sale of personal items in a flea market is not considered a business activity when those items are no longer used by the person who sells them. This clarification applies to people who occasionally sell their own unused personal property.

Taxes: GST and QST​

General registration rule​

Operators and occupants of flea markets are subject to the same general registration rules for tax files as most merchants. The files in question are:

  • the Goods and Services Tax file, or GST;
  • the Quebec Sales Tax file, or QST.

Exception for small suppliers​

A person does not have to register for the GST and QST files and does not have to collect taxes on their sales if they are considered a small supplier. A person is considered a small supplier if the total of their taxable sales does not exceed:

  • $30,000 during a given calendar quarter;
  • or $30,000 for all of the four calendar quarters preceding that quarter. The applicable threshold is therefore $30,000.

Loss of small supplier status​

If the person is not considered a small supplier or ceases to be one, they must:

  • register for the GST and QST files;
  • collect the applicable GST and QST;
  • then remit the taxes collected to Revenu Quebec.

Application to operators​

When an operator must collect taxes, they must apply them to the amounts charged for:

  • table rentals;
  • space rentals.

Application to occupants​

When an occupant must collect taxes, they must apply them to the amounts charged for:

  • the services they provide;
  • the goods they sell. This obligation applies to goods sold whether they are:
  • new;
  • used.

For further information about registration for Revenu Quebec files, the document mentions the following publication:

PublicationNumber
Registration for Revenu Quebec filesIN-202

Income tax​

If the business activities carried on in a flea market generate a profit, Revenu Quebec may consider that the person is operating a business. In that case:

  • the profits earned are treated as business income;
  • those profits must be included in the person's income tax return. This rule may apply to an operator or an occupant, depending on the nature of their activities and the profits derived from them.

Hiring staff​

A person who pays or expects to pay a salary or remuneration to one or more employees has special obligations.

They must in particular:

  • make certain payroll deductions;
  • remit those deductions to Revenu Quebec;
  • pay certain contributions as an employer;
  • be registered as an employer for source deductions. This obligation applies to people who employ or expect to employ staff in the context of their flea market activities.

For obligations relating to deductions and contributions, the document mentions the following guide:

GuideNumber
Employer Guide - Source Deductions and ContributionsTP-1015.G

Record keeping​

A person who carries on business activities in a flea market must keep sufficient records and keep them up to date. These records must support the information related to the business activities. The person must keep:

  • the records;
  • all supporting documents that back up the information contained in those records. The minimum retention period is:
  • six years following the end of the last year to which the documents relate. This obligation applies to documents related to the business activities of the operator or the occupant.

Availability in English​

The document states that the publication is also available in English under the title:

LanguageTitleNumber
EnglishFlea MarketsIN-255-V

Special cases and exceptions​

Small supplier​

Small supplier status is an exception to the obligations to register for the GST and QST files and to the obligation to collect taxes. A person can benefit from this exception only if their taxable sales meet the following threshold:

  • they do not exceed $30,000 during a given calendar quarter;
  • they also do not exceed $30,000 for all of the previous four calendar quarters. If this threshold is exceeded or if the person no longer meets the small supplier criteria, the exception no longer applies.

Operator registered for QST​

An operator registered for the QST file receives form VD-350.44 by mail. This rule does not apply in the same way to an operator who is a small supplier, since the latter does not automatically receive the form.

Occasional sale of unused personal items​

The occasional sale, in a flea market, of personal property that the person no longer uses is not considered a business activity. This distinction is important because the tax obligations described in the document apply to business activities.

Permanent or temporary market​

The document applies equally to flea markets operated:

  • on a permanent basis;
  • on a temporary basis. The operator's obligations regarding the monthly return, the posting of the list of occupants, and the penalties may therefore apply in both situations.

Occupant offering services​

An occupant is not only a person who sells merchandise. It may also be a person who provides services in a flea market. The examples provided include:

  • hairdressing;
  • aesthetics;
  • watch repair;
  • jewelry repair;
  • computer repair.

New goods and used goods​

When the occupant must collect taxes, the obligation applies to goods sold in the course of their activities, whether they are:

  • new;
  • used. The fact that a good is used therefore does not exclude the application of taxes when the registration and collection rules apply.

Steps and procedures​

For the operator​

1. Collect information from occupants​

The operator must obtain the necessary information from each occupant in order to complete form VD-350.44 and prepare the list of occupants. The information may include:

  • the name;
  • the address;
  • the social insurance number;
  • the business name, if applicable;
  • the NEQ, if applicable;
  • QST identification numbers, if applicable;
  • QST account numbers, if applicable.

2. Complete form VD-350.44​

The operator must complete the form:

FormNumber
Return concerning flea markets and similar businessesVD-350.44
A facsimile of the form may also be used.

3. Send the return every month​

The return must be filed monthly. The deadline is:

  • no later than the 14th day of the month following the month covered by the form.

4. Prepare a public list of occupants​

The operator must prepare a list intended for the public. This list must contain only:

  • the names of the occupants. It must not display the other information collected for the purposes of the form.

5. Post the list in the required places​

The list must be posted:

  • at the operator's main establishment;
  • in a place easily accessible to the public who frequent the flea market.

6. Collect taxes if the operator is not a small supplier​

If the operator is not or is no longer a small supplier, they must:

  • register for the GST and QST files;
  • collect taxes on table or space rentals;
  • remit the taxes collected to Revenu Quebec.

7. Report business income, if applicable​

If business activities generate a profit and are considered the operation of a business, the profits must be included in the income tax return.

8. Register as an employer, if there is staff​

If the operator pays or plans to pay remuneration to employees, they must:

  • register as an employer for the source deductions file;
  • make the applicable deductions from payroll;
  • remit the deductions;
  • pay the applicable employer contributions.

9. Keep and retain records​

The operator must:

  • keep sufficient records;
  • keep them up to date;
  • retain supporting documents;
  • keep these documents for six years following the end of the last year to which they relate.

For the occupant​

1. Provide the requested information to the operator​

The occupant must provide the operator with the information needed for the return and for the list of occupants. The information mentioned includes in particular:

  • their name;
  • their address;
  • their social insurance number;
  • the business name, if applicable;
  • their NEQ, if applicable;
  • their QST-related identification numbers, if applicable;
  • their QST-related account numbers, if applicable.

2. Determine whether their activities are business activities​

The occupant must distinguish between:

  • the occasional sale of personal items they no longer use;

  • business activities involving the sale of goods or the provision of services. The occasional sale of unused personal property is not considered a business activity.

3. Check their small supplier status​

The occupant must take into account the $30,000 threshold for taxable sales:

  • for a given calendar quarter;
  • and for the previous four calendar quarters. If they remain below this threshold, they may be considered a small supplier.

4. Register for the tax files if necessary​

If the occupant is not or is no longer a small supplier, they must:

  • register for the GST file;
  • register for the QST file;
  • collect taxes on their services;
  • collect taxes on their sales of new goods;
  • collect taxes on their sales of used goods;
  • remit the taxes collected to Revenu Quebec.

5. Include business profits in their income tax return​

If the occupant's activities produce a profit and Revenu Quebec considers that they are operating a business, the profits must be included in their income tax return as business income.

6. Meet employer obligations, if they hire​

If the occupant pays or plans to pay a salary or remuneration to employees, they must:

  • make payroll deductions;
  • remit the deductions;
  • pay employer contributions;
  • be registered as an employer for the source deductions file.

7. Keep and retain records​

The occupant who carries on business activities must:

  • keep sufficient records;
  • keep them up to date;
  • retain supporting documents;
  • keep these documents for six years following the end of the last year to which they relate.

Important warnings​

  • An operator who does not send form VD-350.44 is liable to a penalty of $100 per day as long as the omission continues.
  • An operator who does not post the list of occupants for public view is also liable to a penalty of $100 per day as long as the omission continues.
  • The public list of occupants must contain only the names of the occupants; other personal or tax information is not intended for public posting.
  • An occupant who does not provide the required information to the operator is liable to a penalty of $100 per item of information not provided.
  • The small supplier threshold is $30,000 in taxable sales, calculated for a given calendar quarter and for all of the previous four calendar quarters.
  • A person who exceeds the threshold or who no longer meets the small supplier conditions must register for the GST and QST files, collect the applicable taxes, and remit them.
  • Taxes may apply both to the rental of tables or spaces by the operator and to the sale of goods or services provided by the occupant.
  • Used goods are not automatically excluded from taxes when the occupant must collect GST and QST.
  • Profits from business activities may be considered business income and may have to be reported.
  • A person who pays or plans to pay a salary or remuneration to employees must meet the obligations relating to source deductions and employer contributions.
  • Records and supporting documents related to business activities must be retained for six years following the end of the last relevant year.
  • The occasional sale of unused personal items in a flea market is not considered a business activity according to the document.
  • The document states that an English version exists entitled Flea Markets, with the number IN-255-V.

Summary​

This document is intended for operators and occupants of flea markets, whether they carry on their activities permanently or temporarily. The operator must send form VD-350.44 every month no later than the 14th day of the following month, and must also post a public list containing only the names of the occupants. The occupant must provide the operator with the necessary information, including their name, address, social insurance number and, if applicable, business and QST information. The

omissions may result in penalties of $100 per day for the operator or $100 per item of information not provided for the occupant. Operators and occupants are subject to GST and QST rules, unless they are small suppliers whose taxable sales do not exceed $30,000 according to the prescribed periods. Profits from business activities may have to be reported as business income. People who hire staff must comply with source deduction and employer contribution obligations. Records and supporting documents must be retained for six years following the end of the last year covered.