Applying a Tax Refund to the Payment of Tax Owing

You may wish to use a GST refund or rebate (such as a refund for an amount of tax paid in error or a rebate for public service bodies) for a given period to offset the net GST payable for the same period. To do so, you must complete the appropriate application and file it along with your GST return.

Similarly, if your QST return shows net QST payable, and you are claiming a QST refund or rebate (such as a refund for an amount of tax paid in error or a rebate for public service bodies), you may deduct the refund or rebate from the amount owing, and remit or claim the difference, as applicable. Here again you must complete the appropriate application and file it with your return.

If you are using the combined GST–QST return (form FPZ-500-V), you may use a QST refund to offset GST payable, and vice versa. In this case, you would remit the difference to Revenu Québec, or claim it as a refund, as applicable. However, offset with respect to GST and QST is normally not allowed by Revenu Québec if a registrant

  • has other debts to the federal or Québec government (even if a tax debt agreement has been reached)
  • has failed to file a return for a previous reporting period
Example

You collected $1,200 in GST and $2,400 in QST. You are entitled to an ITC of $1,750 and an ITR of $150.

GST collected$1,200
ITC$1,750
Refund of net GST($550)
QST collected$2,400
ITR$150
Net QST payable$2,250
Net QST to be remitted$2,250
Refund of net GST$550
Amount of remittance$1,700

If you have branches or divisions that file separate GST and QST returns, you may use the refund of one branch or division to offset the tax payable by another (GST offset by QST, or vice versa). To do so, you must file the returns of the branches or divisions at the same time.

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter