Are you looking to register your company for GST/QST but don’t know where to start? Some steps are essential to getting things right.
In this guide, you will learn about the various benefits and eligibility criteria, as well as the registration process and tax obligations. Not to mention the frequently asked questions; all the necessary information to confidently navigate the initial stages of your project!
GST and QST sales taxes: Understanding their significance for your business
To begin with, anyone doing business in Quebec must register for the Goods and Services Tax (GST) and Quebec Sales Tax (QST). Once you’ve registered for GST, you’re also registered for Harmonized Sales Tax (HST). For accounting purposes, the GST rate is 5% and the QST is 9.975%, for a total of 14.975% in taxes.
Registering for taxes is essential to make taxable rentals and supplies in Canada. However, you cannot register if you:
- are a personal trust
- are an individual or a partnership
- run a non-profit organization
- offer non-taxable products or services
To facilitate registration for various government programs and services, we recommend you obtain a Business Number (BN).
Benefits of registration: Why register your company for GST and QST taxes?
Here are three reasons why you should register your business for taxes:
Claiming paid taxes
One of the primary advantages of registering for GST/QST files is the input tax credit. Broadly, this involves the reimbursement of taxes paid on your purchases of goods or services for your business.
Charging GST and QST can enhance your company’s credibility; being registered indicates a turnover generally exceeding $30,000. For some, this can be of paramount importance!
If your business income is under $30,000, you’re considered a small supplier in the eyes of the government, which relieves you of certain obligations such as charging taxes.
As your sales increase and you gain loyal customers, it’s wise to consider registering your company for GST/QST to prevent customer dissatisfaction. The earlier you start charging GST and QST, the less surprising it will be!
Eligibility Criteria: What your company must fulfill to obtain a GST and QST number
It’s essential to know the various eligibility criteria before registering for taxes.
Firstly, you must register if the annual total of your taxable sales exceeds $30,000 over four consecutive quarters. Additionally, registration for both taxes is mandatory if you have a taxi or limousine business. The same applies if you’re a non-Quebec resident and charge admission to events in the province.
Furthermore, if you sell tobacco, fuel, alcoholic beverages, new tires, or road vehicles, you must register for the QST files.
Registration process: Detailed steps to register your company for GST and QST taxes
For anyone who thinks the process of creating an account is complex and time-consuming, think again!
To begin with, you need to determine what type of business you are (individual, corporation, partnership, trust or other). Next, you must indicate whether the company’s head office is in Canada and whether you are the company’s ex-officio representative.
In addition to entering your contact details, you must create a temporary code to leave the service and return anytime.
Tax obligations of registered companies : What you need to know
Regardless of your turnover and profit margin, ensure that you meet the tax obligations of Revenu Québec and the CRA. Here are a few regulations and laws to be aware of if you’re a Quebec entrepreneur:
- Québec Taxation
- Labor standards
- Occupational health and safety
- Environmental law
- Consumer protection
- Access to information
- Personal information protection
Don’t hesitate to seek advice from professionals and specialists.
Additional resources: Useful links to help you register for GST and QST taxes
Which resources should you consult for accurate information about your tax files? Here’s a list of the most relevant to add to your favourites.
Not registered with Revenu Québec’s files? You can use the startup registration service right now. You’ll quickly receive a wealth of information and your business number: proof of your registration with the REQ (Registre des Entreprises du Québec).
However, if you are already registered with Revenu Québec, you can use the registration service in the “Taxes” section of My Business Account.
Suppose you prefer to speak to someone directly. In that case, you can call Revenu Québec’s customer service department on Mondays, Tuesdays, Thursdays and Fridays between 8:30 a.m. and 4:30 p.m. or Wednesdays between 10 a.m. and 4:30 p.m.
Government of Canada
Frequently asked questions
Specific steps are essential, from registration to obtaining your very own tax number. Here are our answers to the most frequently asked questions.
How do I register for GST and QST?
You can now register for GST and QST files by filling out this form on Revenu Québec.
Where can I find a GST/QST number?
By following the instructions for the required file registration, you will automatically generate your tax numbers. They will be mailed to the postal address registered for your company.
Who must register for QST?
Anyone carrying on a commercial activity and generating more than $30,000 must register for QST.
How do I get a company's tax number?
As a company, you may need tax information from your suppliers to complete or prove a transaction. Their numbers should always be available to you: they can usually be found on the invoices you receive as a customer.
Who is eligible for GST and QST?
To qualify for the tax credit, you must reside in Canada and be 19 years of age or older.
When do I have to pay GST/QST as a self-employed worker?
When you make more than $30,000 in four consecutive quarters. However, if income is lower, the self-employed person is considered a “small supplier” and will not have to pay GST or QST.
You can contact the Canada Revenue Agency (CRA) for more information.
Registering as a small supplier for GST/QST: Does it make sense?
While it is mandatory to register for the program account if you earn $30,000 or more, you can still register if you earn less. The benefits? Greater credibility in the eyes of significant customers.