Last Reporting Period
When you cancel your GST/HST and QST registration, you have a last reporting period that ends on the day before the day the cancellation is effective. You must file the return for the last reporting period no later than one month after the end of the period.
A person registered for the GST/HST and QST with an annual reporting period (January 1 to December 31) stops carrying on commercial activities on October 31, 2024. The person uses form LM-1.A-V to cancel their registration effective November 1, 2024. Revenu Québec confirms the effective date of the cancellation in writing. The person must file their final return for the period from January 1 to October 31, 2024, no later than November 30, 2024.
A small supplier registered for the GST/HST and QST with an annual reporting period (January 1 to December 31) stops carrying on commercial activities on October 31, 2024. The supplier uses form LM-1.A-V to cancel their registration effective November 1, 2024. We confirm the effective date of the cancellation in writing.
As of November 1, 2024, the supplier is no longer required to collect GST/HST and QST on their taxable sales and can no longer obtain ITCs and ITRs. The supplier must file their final return for the period from January 1 to October 31, 2024, no later than November 30, 2024.
Property held at the time of cancellation
If you cease to be a registrant, you are considered to have sold all property intended for consumption, use or sale in the course of commercial activities. However, different rules apply to capital property, non-capital property, and services and rental property.
Capital property
You are deemed to have ceased to use your capital property in the course of your commercial activities immediately before cancelling your registration and to have sold the property and collected the GST/HST and QST. As a rule, the taxes are equal to the basic tax content of the property at the time of the change in use.
In September 2022, a person registered for the GST/HST and QST bought office furniture at a cost of $5,000, plus $250 GST and $498.75 QST. Since the furniture is for use in commercial activities, the person was able to claim an input tax credit (ITC) and an input tax refund (ITR) for the taxes paid.
On June 30, 2024, the person cancelled their registration. The person still owns the furniture and is therefore considered to have sold it and collected the taxes immediately before cancelling their registration. On that date, the furniture's fair market value (FMV) was $2,500 for both GST and QST purposes.
| Calculation of taxes to be remitted | GST | QST | ||
|---|---|---|---|---|
| Taxes paid at time of acquisition | $250.00 | $498.75 | ||
| Taxes paid on improvements | + | $0.00 | + | $0.00 |
| Refund or rebate | – | $0.00 | – | $0.00 |
| Subtotal | $250.00 | $498.75 | ||
| FMV / Total acquisition cost of property and cost of improvements: $2,500/($5,000 + $0.00) | x | 0.50 | x | 0.50 |
| Taxes to be remitted | $125.00 | $249.38 | ||
Non-capital property
You are deemed to have sold all your non-capital property for a price equal to its fair market value (FMV) immediately before you ceased to be a registrant and to have collected the GST/HST and QST calculated on the FMV.
A person ceased to be registered for the GST/HST and QST on April 30, 2024, and had an inventory of unsold computers with an FMV of $8,000 for both GST and QST purposes.
GST and QST calculated on the FMV must be included in the net tax payable for the person's last reporting period as a registrant. The GST payable is $400 ($8,000 × 5%). The QST payable is $798 ($8,000 × 9.975%).
Services and rental property
If a service is being rendered or property is being leased over a period that extends beyond the date when you cease to be a registrant, you are entitled to an input tax credit (ITC) and an input tax refund (ITR) solely for the period during which you were a registrant. The GST/HST and the QST must be prorated.
On April 15, 2025, a person registered for the GST/HST and QST with a monthly reporting period received an invoice for advertising services covering the period from April 15 through May 14, 2025. The cost of these services was $500, including $25 GST and $49.88 QST. For the April 2025 reporting period, an ITC and an ITR were claimed for the taxes paid.
On May 1, 2025, the person ceased to be a registrant. As a result, they must add an amount equal to the ITC and ITR claimed for the period they were no longer a registrant to the net tax payable when they prepare their final return. The amount of the GST payable is $11.67 ($25 × 14/30). The amount of the QST payable is $23.28 ($49.88 × 14/30).