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Registering a business for the GST and the QST is an essential step in meeting your tax obligations in Quebec.
Two further steps are worth planning once you are registered: setting up your small business accounting, and lining up financing for your growth.
Whether you are self-employed, the owner of a small corporation or the director of a growing business, you need to understand when registration becomes mandatory.
This guide explains clearly when and how to register your business for the GST/QST, which exceptions apply and what happens if you register late, based on the official rules of Revenu Québec and the Canada Revenue Agency (CRA).
An individual or a corporation must register for the GST/QST once taxable revenue exceeds $30,000 over four consecutive calendar quarters, or within a single quarter.
Below that threshold, you are considered a small supplier, and registration remains optional. Some businesses still register voluntarily in order to claim input tax credits and input tax refunds (ITCs and ITRs).
Some activities require immediate registration, regardless of revenue. For example:
These obligations are set out by Revenu Québec and the CRA.
A non-resident business that sells taxable goods or services to customers in Quebec must register. The rules vary according to the nature of the activity and the location of the customer.
Certain types of businesses and activities are exempt from the GST/QST. Financial services, most health services, recognized educational services and charities may be exempt.
The $30,000 threshold is calculated on taxable revenue only. Sales of assets used in the business, such as a vehicle or equipment, are excluded.
Some activities are exempt even when revenue exceeds $30,000. Revenu Québec details these particular cases on its website.
Even if your business qualifies as a small supplier and registration is not mandatory, registering voluntarily can work in your favour.
In short, voluntary GST/QST registration can bring financial and administrative benefits while strengthening the reputation of your business.
The simplest route is the Registering a New Business service, available through My Account for businesses.
You can also complete Form LM-1 (Application for Registration) and submit it by mail or in person.
To register, have the following ready:
Once the application is submitted, Revenu Québec assigns a GST number and a QST number. Confirmation can take a few days.
After registering, you must charge the GST and the QST on your taxable sales and remit the amounts to Revenu Québec.
How often you file (monthly, quarterly or annually) depends on your annual sales. You have to respect the filing deadlines to avoid penalties.
A registered business can claim a refund of the GST and the QST paid on its operating expenses.
Once your business is registered for the GST/QST, tracking your expenses and claiming your input tax credits correctly becomes essential. Some business credit cards can make these tasks easier to handle.
Main benefits:
Examples of popular cards:
If you pass the $30,000 threshold without registering, Revenu Québec can require retroactive payment of the taxes you should have charged.
You could also owe interest and penalties for failing to meet your tax obligations.
Because you never collected those taxes from your customers, you will have to cover them out of your business cash flow.
To make the process easier and confirm that everything is in order, here are the main official resources to consult:
GST/QST registration lets a business meet its tax obligations and avoid penalties. The thresholds, deadlines and procedures are clear and published by Revenu Québec and the Canada Revenue Agency.
When in doubt, consult the official guides and use the online services to register your business quickly. You gain compliance and peace of mind.
Savings this way:
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