QC QST Return

Section 1 -- Quick Reference

Section 1 -- Quick Reference

Field	Value
Country	Canada -- Quebec
Tax	QST (TVQ) at 9.975% -- filed SEPARATELY from federal GST
Currency	CAD only
Tax year	Calendar year or fiscal year
Primary legislation	Act respecting the Quebec Sales Tax (AQST), CQLR c. T-0.1
Supporting legislation	Excise Tax Act (ETA) for GST
Tax authority	Revenu Quebec
Filing portal	Revenu Quebec My Account (Mon dossier) / ClicSequr
Form	VD-403 (QST Return)
Filing deadline	Monthly: last day of following month; Quarterly: last day of month after quarter; Annual: 3 months after year-end
Contributor	Open Accountants Community
Validated by	Live status: https://openaccountants.com/skills/qc-qst-return
Skill version	2.0

QST Rate

QST Rate

Tax	Rate	Since
QST	9.975%	January 1, 2013

• QST — 9.975% (January 1, 2013)
• QST base calculation — QST is calculated on the price EXCLUDING GST (no tax-on-tax since 2013).

Small Supplier Threshold

• Small supplier threshold — $30,000 CAD (same as GST)
• Small supplier registration requirement — If taxable supplies exceed $30,000 in a single quarter or over four consecutive quarters, must register.

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown QST registration status	Not registered
Unknown supply category	Taxable at 9.975%
Unknown business-use %	0% ITR
Unknown meals ITR	50% (capped)

Section 2 -- Required Inputs and Refusal Catalogue

Required Inputs

Minimum viable -- QST registration number, reporting period, total taxable supplies, total QST collected, total QST paid on expenses.

Recommended -- supply breakdown (taxable/zero-rated/exempt), sales invoices, purchase invoices with QST numbers.

Ideal -- complete bookkeeping, GST return for cross-reference, prior QST returns.

Refusal Catalogue

• R-QC-QST-1 -- Financial services — Exempt -- complex rules. Escalate.
• R-QC-QST-2 -- Real property — Real property transactions require specialist analysis. Escalate.
• R-QC-QST-3 -- Non-resident suppliers — Specified QST registration rules apply. Escalate.

Section 3 -- Supplier Pattern Library

3.1 Output (Sales) Patterns

3.1 Output (Sales) Patterns

Pattern	QST Treatment	Notes
SERVICE SALE, GOODS SALE	Taxable 9.975%	Standard
EXPORT, OUT-OF-PROVINCE	Zero-rated (0%)	No QST; ITRs still claimable
BASIC GROCERY, PRESCRIPTION	Zero-rated	Specific items
RESIDENTIAL RENT (long-term)	Exempt	No QST; no ITR on inputs
FINANCIAL SERVICE	Exempt	No QST
PRINTED BOOKS	Zero-rated (QST-specific)	Taxable for GST but zero-rated for QST
CHILDREN'S CLOTHING	Zero-rated (QST-specific)	Same

3.2 Input (Purchase) Patterns

3.2 Input (Purchase) Patterns

Pattern	ITR Eligible	Notes
OFFICE SUPPLIES, SOFTWARE	Yes (100%)	Business expense
ACCOUNTING, LEGAL	Yes (100%)	Professional fees
MEALS, ENTERTAINMENT	Yes (50%)	50% restriction
VEHICLE EXPENSES	Prorate	Business km percentage
HOME OFFICE	Prorate	Workspace percentage
PERSONAL EXPENSE	No	Never eligible
EXEMPT SUPPLY INPUT	No	No ITR for exempt activity inputs

3.3 Self-Assessment Patterns

3.3 Self-Assessment Patterns

Pattern	Treatment	Notes
AWS, GOOGLE, MICROSOFT (non-QC)	Self-assess QST	Imported services from non-QC suppliers
CLOUD SERVICE, SAAS (non-QC)	Self-assess QST	Report on VD-403 line 104

Section 4 -- Worked Examples

Example 1 -- Basic Quarterly Return

Input: Taxable supplies $25,000. Zero-rated $2,000. QST paid on expenses $600.

Computation:

• QST collected: $25,000 x 9.975% = $2,493.75
• ITRs: $600
• Net QST: $2,493.75 - $600 = $1,893.75 owing

Example 2 -- Refund Position (Exporter)

Input: Taxable supplies $5,000. Zero-rated (exports) $40,000. QST on expenses $1,500.

Computation:

• QST collected: $5,000 x 9.975% = $498.75
• ITRs: $1,500 (zero-rated still qualifies)
• Net QST: $498.75 - $1,500 = -$1,001.25 (refund)

Example 3 -- Meals ITR

Input: Business meals $2,000. QST paid $199.50.

Computation:

• ITR: $199.50 x 50% = $99.75

Section 5 -- Tier 1 Rules (When Data Is Clear)

5.1 QST Base

• QST Base — QST applies to the sale price EXCLUDING GST. Selling price $100 -> GST $5 -> QST $9.98 (9.975% of $100, NOT $105).

5.2 ITR Eligibility

• ITR Eligibility — Must be for commercial activities. Must have documentation with supplier's QST number. Claim within 4 years. Mixed-use: 90%+ = claim 100%; 10% or less = claim 0%; between = actual %.

5.3 VD-403 Structure

• VD-403 Structure — Line 101: QST collected. Line 104: adjustments. Line 106: ITRs. Line 111: net QST. Line 114: net owing or refund.

5.4 Filing Frequency

• Filing frequency threshold - monthly — Over $6M CAD (monthly filing)
• Filing frequency threshold - quarterly — $1.5M-$6M CAD (quarterly filing)
• Filing frequency threshold - annual — Under $1.5M CAD (annual filing (can elect more frequent))

Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required)

6.1 Quick Method

• Quick method eligibility threshold — $400,000 CAD (annual taxable supplies)
• Quick method rate - services — 3.4% percent (of QST-included revenue)
• Quick method rate - goods — 6.6% percent (of QST-included revenue)
• Quick method credit — 1% credit on first $30,000. Flag for reviewer.

6.2 Place of Supply

• Place of Supply — QST applies to supplies made in Quebec. Goods: where delivered. Services: where recipient located. Flag for cross-border/interprovincial.

6.3 Bad Debts

• Bad Debts — Recover QST on uncollectable invoices via VD-403 line 107. Flag for reviewer.

6.4 Self-Assessment on Imported Services

• Self-Assessment on Imported Services — QST must be self-assessed on taxable services from non-resident suppliers. Common for SaaS subscriptions.

Section 7 -- Excel Working Paper Template

QUEBEC QST RETURN -- Working Paper

A. OUTPUT A1. Taxable supplies ___________ A2. QST collected (A1 x 9.975%) ___________ A3. Adjustments (self-assessments) ___________ A4. Total QST (A2 + A3) ___________

B. INPUT B1. ITRs on business expenses ___________ B2. ITR adjustments ___________ B3. Net ITRs (B1 - B2) ___________

C. NET QST C1. A4 - B3 ___________ C2. Instalments paid ___________ C3. Net owing / (refund) ___________

REVIEWER FLAGS: [ ] QST rate 9.975% used (not 10%, not HST)? [ ] QST base excludes GST? [ ] Separate from GST return? [ ] Meals ITR at 50%? [ ] Self-assessment on imported services?

Section 8 -- Bank Statement Reading Guide

Section 8 -- Bank Statement Reading Guide

Bank	Format	Key Fields
Desjardins	CSV	Date, Description, Withdrawal, Deposit
RBC, TD, BMO, Scotiabank	CSV, PDF	Date, Description, Debit, Credit, Balance
National Bank	CSV	Date, Description, Amount

Section 9 -- Onboarding Fallback

ONBOARDING QUESTIONS -- QUEBEC QST

1. QST registration number?
2. GST registration number?
3. Filing frequency (monthly/quarterly/annual)?
4. Reporting period dates?
5. Total taxable supplies in period?
6. Zero-rated and exempt supplies?
7. Total QST collected?
8. QST paid on business expenses?
9. Out-of-province or out-of-country sales?
10. Using quick method?

Section 10 -- Reference Material

Section 10 -- Reference Material

Topic	Reference
QST rate	AQST, s. 16
Registration	AQST, s. 407+
ITRs	AQST, s. 199+
Small supplier	AQST, s. 148
Quick method	AQST, s. 433.1+
Filing deadlines	AQST, s. 468+
Zero-rated (books, children's)	AQST specific schedules

PROHIBITIONS

• NEVER combine QST and GST into a single return
• NEVER calculate QST on a GST-included price
• NEVER claim ITRs for personal expenses
• NEVER claim ITRs for exempt supply inputs
• NEVER claim more than 50% ITR on meals
• NEVER apply HST rates to Quebec
• NEVER use GST quick method rates for QST
• NEVER ignore self-assessment on imported services
• NEVER present calculations as definitive

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.

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