Designated Reporting Periods
Registrants may request that certain reporting periods in a fiscal year be designated reporting periods, that is, periods for which they will not be required to file a return. To make this request, the tax that was collected or collectible and the adjustments to the net tax calculated must total $1,000 or less for the reporting period(s) concerned. Amounts of tax pertaining to a designated period must be reported on the return for the following period.
Designated reporting periods can be useful for persons that operate a seasonal or part-time business, or for non-residents that carry on commercial activities in Canada (or in Québec, in respect of the QST) for a short time each year. Designated reporting periods are granted only if the registrant has fulfilled all obligations to the Canada Revenue Agency and Revenu Québec.
Designated reporting periods can be granted to businesses and organizations, regardless of the amount of their receipts or the nature of their commercial activities, but not, in most cases, to registrants that file annual returns. Moreover, designated reporting periods cannot be granted to branches or divisions of a registrant, unless the registrant applies for designated reporting periods on behalf of the business as a whole.
To apply for designated GST and QST reporting periods, you must submit a letter to Revenu Québec, either at the time you register or before the beginning of the first designated period. The letter must indicate the date on which each designated period is to begin and end, and the registrant's legal name and the names of any branches or divisions that file separate returns. Do not forget to sign the letter.