CROSS BORDER RESOURCES

New Quebec QST rules for Internet Sales

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As part of its 2018 budget, the Quebec government announced that it will require its Quebec Sales Tax (QST) to be collected on services and the incorporeal property sold from abroad. The measure was announced as part of the province’s 2018 Budget.

Prior to 2019, suppliers who were non-residents of Quebec (hereinafter referred to as “non-residents”) were only required to register for QST if they had a permanent establishment or were carrying on business in Quebec.

Starting in 2019, non-residents have to enrol in Quebec’s QST registration system if their sales to non-registered Quebec individuals exceed $30,000 during the last 12 months.

Date of Required Enrollment in the new QST Registration System

  • January 1 2019, for:

(1) non-residents who do not carry on business in Canada and who are not registered GST/HST and;

(2) operators of a Specified Digital Platform. A Specified Digital Platform is where an operator enables a non-resident to make a supply in Quebec through the use of its digital platform and controls the transaction between the non-resident and the customer like billing and delivery.

  • September 1 2019, for non-residents who carry on business in Canada and are registered for GST/HST.

 

Steps to Follow if Enrollment for the new QST Registration System is required

  • Register online for the new QST registration system through the Revenu Québec website.

This registration (bearing a number that starts with NR followed by 8 digits) is different from the usual QST registration since it only allows the registrant to collect and remit the QST without having any entitlement to ITR recoveries. 

Similarly, QST collected by non-residents cannot be recovered as ITR by the customer.  If the QST has been incorrectly charged by the non-resident, the customer should claim a credit from the supplier.

  • Non-residents have to put procedures in place to determine if their customers in Quebec are subject to the QST. To do so, they must obtain 2 pieces of information to validate the customer’s usual place of residence and if he/she is registered for QST.
  • Report & pay the QST collected online on a quarterly basis. The remittance of the QST can be made in CAD, USD or Euros.

 

Non-residents are still able to voluntarily register under the usual QST and claim ITR’s.  But if they choose this route they must also register for GST/HST

For more details see: https://www.revenuquebec.ca/en/press-room/tax-news/details/152500/

 

At UHY Victor, we have expertise in assessing filing requirements. Contact us  for a free consultation regarding your QST issues:

UHY Victor LLP Canada U.S. Tax Team

crossbordertax@uhyvictor.com
(514) 282-0067