This post is also available in: Français (French)
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 Enrolment in the new QST Registration System
Steps to Follow if Enrolment for the new QST Registration System is required
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 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 US Tax Team
Disclaimer: UHY Victor assumes no responsibility or liability for any errors or omissions of this site. The information used in this site is provided for general guidance. This article is not a substitute for professional legal advice.