Quebec Sales Tax (QST / TVQ) return preparation for a self-employed sole proprietor or small business.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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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
$30,000
Small supplier registration requirement
If taxable supplies exceed $30,000 in a single quarter or over four consecutive quarters, must register.
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.
QST Base
QST applies to the sale price EXCLUDING GST. Selling price $100 -> GST $5 -> QST $9.98 (9.975% of $100, NOT $105).
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 %.
VD-403 Structure
Line 101: QST collected. Line 104: adjustments. Line 106: ITRs. Line 111: net QST. Line 114: net owing or refund.
Filing frequency threshold - monthly
Over $6M
Filing frequency threshold - quarterly
$1.5M-$6M
Filing frequency threshold - annual
Under $1.5M
Quick method eligibility threshold
$400,000
Quick method rate - services
3.4%
Quick method rate - goods
6.6%
Quick method credit
1% credit on first $30,000. Flag for reviewer.
Place of Supply
QST applies to supplies made in Quebec. Goods: where delivered. Services: where recipient located. Flag for cross-border/interprovincial.
Bad Debts
Recover QST on uncollectable invoices via VD-403 line 107. Flag for reviewer.
Self-Assessment on Imported Services
QST must be self-assessed on taxable services from non-resident suppliers. Common for SaaS subscriptions.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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
| Tax | Rate | Since |
|---|---|---|
| QST | 9.975% | January 1, 2013 |
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) |
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.
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
| 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
| 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 |
Input: Taxable supplies $25,000. Zero-rated $2,000. QST paid on expenses $600.
Computation:
Input: Taxable supplies $5,000. Zero-rated (exports) $40,000. QST on expenses $1,500.
Computation:
Input: Business meals $2,000. QST paid $199.50.
Computation:
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
| 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 |
ONBOARDING QUESTIONS -- QUEBEC QST
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 |
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.
The most up-to-date, verified version of this skill is maintained at openaccountants.com.
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