Are you in a situation where you need to register your business for GST/QST, but don’t know where to start? Some steps are essential to getting things right. In this guide, you’ll learn about the various benefits and eligibility criteria. You’ll also learn about the registration process and tax obligations.
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%.
Registering for GST/QST is essential if you make taxable rentals and supplies in Canada. However, you cannot register if you :
To facilitate registration for various government programs and services, we recommend you obtain a Business Number (BN).
There are many advantages to registering your business with GST/QST files, including :
Here’s more information on each of them.
One of the main advantages of registering your company for GST/QST is that you can claim an input tax credit. This allows you to obtain a refund of the taxes you paid on purchases of goods or services for your business.
Charging and collecting GST and QST can help build your company’s credibility. In fact, being registered for GST/QST gives a clue as to your sales, generally in excess of $30,000. For some current or future customers, this can be significant. If your sales revenue is less than $30,000, you’re considered a small supplier, which relieves you of certain obligations such as collecting taxes.
If your sales increase, you should think about registering your business for GST/QST. Because, if your business income exceeds $30,000, you’ll have to start billing and collecting taxes. Some of your customers may be unhappy, especially if this happens mid-year or during a fixed-term contract. The earlier you start charging GST and QST, the less of a surprise it will be for your customers… and the better your relationship will be with them.
It’s important to be aware of the various eligibility criteria before registering for taxes. You must register your company for GST/QST if :
However, there are some special cases related to the application of the GST/QST. For example, for suppliers outside Quebec. To find out more, visit the Revenu Québec website.
The process of registering your business for GST/QST is relatively straightforward. First, you need to determine what type of business you are:
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.
To start registering your business for GST/QST, use Revenu Québec’s online services.
Regardless of your sales, you must meet the tax obligations of Revenu Québec and the Canada Revenue Agency (CRA). Here are a few regulations and laws to be aware of if you’re a Quebec entrepreneur:
Don’t hesitate to seek advice from professionals and specialists.
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.
If you are not registered with Revenu Québec, you can use the Register New Business service. You’ll receive your Quebec Enterprise Number (NEQ), proof of your registration with the Quebec Enterprise Register. On the other hand, if you are already registered with Revenu Québec, you can use the registration service, accessible in the “Taxes” section of “My Account for Businesses“.
If necessary, 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 on Wednesdays between 10 a.m. and 4:30 p.m.
To simplify the process of registering for GST and QST taxes, you may wish to obtain a Business Number (BN). You’ll also be guided through the various stages by creating or consulting CRA’s “My Business Account“.
Check out our guides and articles for businesses, including :
Once you have registered your company with the GST/QST files, you must :
You can remit (pay) the GST/QST you’ve collected using your financial institution’s online payment service. Another option is to set up a pre-authorized debit in Revenu Québec’s “My Account for Businesses”.
You can use the Government of Quebec’s Enterprise Register to obtain information about a company. To perform a search, you must have the company name, the name of the individual or the Quebec Enterprise Number (NEQ).
In addition, you can use the Canada Revenue Agency’s (CRA) GST/HST Registry to confirm that the company charging you GST/HST is on file. For a QST number, use the services of Revenu Québec.
Once you’ve registered your business for GST/QST, you may want to compare and take out a business credit card to improve the efficiency and financial management of your business.
More specifically, corporate cards offer numerous advantages. Notably, improving cash flow management, better managing business expenses and accumulating loyalty points and rewards. These can then be converted into free travel, cash back or even purchases of office supplies for your company.
Here are the corporate credit cards we often recommend:
But there are many others. To make your search for a business credit card easier, we offer detailed comparisons of the best credit card offers in Canada. You’ll also find a credit card comparator (select the “SME” search field to see only the selection of cards for entrepreneurs).
In short, registering your business for GST/QST is mandatory, with a few exceptions. For example, if you are considered a small supplier. The advantages of registering your business for GST/QST are numerous, even if you’re not obliged to do so. In this guide, we’ve explained the eligibility criteria and the steps involved in registering your business for the GST/QST. By now, you should be in a position to register and meet your tax obligations to Revenu Québec and the CRA.
Use the Canada Revenue Agency’s (CRA ) GST/HST Registry to confirm that the company charging you GST/HST is on file. For a QST number, use the services of Revenu Québec.
If you’re in business and your revenues exceed $30,000 over four consecutive quarters, you must register for GST/QST.
You can register for GST/HST and QST files using Revenu Québec’s online services.
When you complete your GST/QST registration, your tax numbers will be mailed to your company’s mailing address.
You must register for and collect GST/QST if you make “taxable supplies” (commercial activity subject to GST/QST) and are not a “small supplier”.
You must pay the GST/QST you have collected using your financial institution’s online payment service. You can also set up a pre-authorized debit in Revenu Québec’s “My Account for Businesses”.
When your revenues exceed $30,000 over four consecutive quarters. If your revenues are less than $30,000, you are considered a “small supplier” and are not required to collect GST and QST. But you can still do so.
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