Basic Rules for Applying the GST/HST and QST
The most common consumption taxes encountered by Québec residents are:
- the goods and services tax (GST), which is calculated at a rate of 5% on the selling price; and
- the Québec sales tax (QST), which is calculated at a rate of 9.975% on the selling price excluding the GST.
The GST and QST are collected on the sale or supply of most goods and services.
The harmonized sales tax (HST) replaces the provincial sales tax and the GST in some provinces.
Under an agreement reached by the federal and Québec governments, Revenu Québec administers the GST/HST in Québec in accordance with the rules set by the federal government.
Accordingly, Revenu Québec receives and processes applications for registration under the GST/HST system from all persons carrying on commercial activities in Québec.
Once registered, these persons continue to deal with Revenu Québec for all GST- and HST-related matters (including returns, remittances, rebate applications, audits, investigations, interpretation of laws and regulations, notices of objection, tax collection, and unfiled returns).
Québec businesses that are GST/HST registrants must collect the HST on supplies they make in participating provinces (New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario and Prince Edward Island).
To find out whether you need to register your business for the GST/HST and QST, click Who Must Register for the GST/HST and QST.