Changes to the QST System in 2013
Significant changes to the QST system came into effect on January 1, 2013. These new measures are further to a tax coordination agreement entered into by the governments of
Measures in effect as of January 1, 2013
New method for calculating the QST
The QST is now calculated on the selling price not including GST. However, to ensure the total taxes payable remain the same, the QST rate has been increased to 9.975%.
If your cash register cannot process three-decimal numbers, click Calculating the Taxes.
Impact of the changes on financial services supplied in Québec
On January 1, 2013, financial services, which were formerly zero-rated under the QST system, became exempt. Consequently, financial institutions are no longer entitled to claim input tax refunds (ITRs) on goods or services acquired to supply financial services.
Rules have been provided to help financial institutions meet their fiscal obligations during this transitional period. For more information in this regard, click Transitional Rules.
Measure in effect as of April 1, 2013
All Québec and federal government departments and agencies will be required to pay taxes (QST and GST/HST) on the acquisition of goods and services.
As of April 1, 2013, you must collect QST and GST/HST from all Québec and federal government departments and agencies. As a result, they will no longer be able to use the exemption certificates required at the time of purchase.
Click When the GST and QST Are Payable for the rules on determining exactly when taxes are payable.
For more information on collecting the QST and GST/HST on contracts that you have entered into with government departments and agencies and that will be in effect on April 1, 2013, contact us.
For additional information on these measures, refer to Information Bulletin 2012-4, published by the Ministère des Finances on May 31, 2012.