Introduction
The goods and services tax (GST) and the Québec sales tax (QST) are collected on the sale of most goods and services. Most transactions conducted in Canada are subject to the GST, which is calculated at a rate of 5% on the purchase price. For transactions conducted in Québec, the QST also applies at a rate of 9.975% on the purchase price, as could other taxes and duties, such as the specific tax on alcoholic beverages, the fuel tax and the specific duty on new tires.
The sale of certain goods, such as basic groceries and some prescription drugs, are zero-rated (that is, they are taxable at a tax rate of 0%). In addition, a limited number of goods and services, such as most health services and the rental of a dwelling for at least a month, are tax-exempt and are therefore not subject to the GST and QST.
In general, persons who make taxable sales of goods or services are required to collect applicable taxes and duties. This means they must collect the taxes and duties when taxable sales are made to diplomatic missions, consular posts, offices of a political division of a foreign state or international organizations. The same applies to taxable sales made to foreign representatives who hold positions within such entities. Note that even if a foreign representative holds an identity card issued by Global Affairs Canada (GAC) as proof of their status, they are still required to pay applicable taxes and duties on all purchases and transactions made in Canada at the point of sale. However, they may be entitled to a rebate of these amounts of tax if they apply for the rebate and submit the required supporting documents.
The Québec and federal governments have agreed to harmonize the rules and procedures applicable to the GST and QST rebate for diplomatic missions, consular posts and certain international organizations. Revenu Québec administers the rebate on its territory.
In this document, we use the term “sale” rather than “supply” since goods and services are most often supplied by way of sale.
We also use the term “goods” to mean both “goods” under the GST system and “property” under the QST system. In addition, we use “real property” to mean both “real property” under the GST system and “an immovable” under the QST system.
Entitlement to the rebate
Foreign entities and representatives are entitled to a rebate of the taxes and duties they paid, under certain conditions.
GST or HST
Rebates of the harmonized sales tax (HST), which applies in New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, work the same way as GST rebates.
The following entities are generally entitled to a rebate of the GST and HST paid on goods and services purchased in Canada for official purposes:
- diplomatic missions
- consular posts
- international governmental organizations
For example, a rebate can be claimed on the GST paid on real property acquired for official purposes.
Moreover, the following foreign representatives are generally entitled to a rebate of the GST and HST paid on goods and services acquired for personal purposes:
- diplomatic agents and family members forming part of their household
- members of the administrative or technical staff of a diplomatic mission and their spouses
- consular officers and their spouses
- consular employees and their spouses
- designated representatives of an international organization and their spouses
To be entitled to a GST or HST rebate, foreign representatives, diplomatic missions, consular posts and international organizations must be covered by the Foreign Missions and International Organizations Act and its regulations, or by bilateral agreements or other arrangements Canada has entered into with other countries, based on reciprocity.
To be entitled to a GST or HST rebate, a foreign representative's name must be on the updated list of eligible foreign representatives and officials (and their spouses) kept by Global Affairs Canada (GAC).
GST or HST rebate eligibility is determined by GAC, and any questions concerning entitlement must be submitted to the Office of Protocol at GAC.
Rebates of the GST or HST are granted for purchases made during the period in which the foreign representative was in office.
Normally, rebates can also be granted to a foreign representative's spouse and any family members living with the representative. To be granted the GST/HST rebate, a foreign representative, their spouse or other family member cannot be engaged in professional or commercial activities in Canada.
If a family member forming part of the foreign representative's household holds their own identity card issued by GAC, they must file a separate rebate application.
Québec taxes and duties
The following entities are entitled to a rebate of the taxes and duties prescribed by Québec legislation that were paid on goods and services purchased in Québec for official purposes:
- diplomatic missions
- consular posts
- offices of a political division of a foreign state
- international governmental organizations
- prescribed non-governmental international organizations
These entities may obtain a rebate of the QST paid on real property purchased for official purposes.
Moreover, the following foreign representatives are entitled to a rebate of the taxes and duties prescribed under Québec legislation:
- diplomatic agents
- members of the administrative or technical staff of a diplomatic mission
- consular officers (other than an honorary consular officer)
- consular employees
- designated representatives of an international governmental organization
- members of an office of a political division of a foreign state
- employees of a prescribed non-governmental international organization
Diplomatic missions, consular posts, offices of a political division of a foreign state and international organizations must have approval from the Ministère des Relations internationales et de la Francophonie du Québec before claiming a rebate of the taxes and duties prescribed by Québec legislation.
Rebates of taxes and duties are granted for purchases made during the period in which a foreign representative was in office.
A rebate of the taxes and duties prescribed by Québec legislation can also be granted to a foreign representative's spouse and any other family members living with the representative if they meet certain conditions, including the following:
- They are not performing the duties of an office or employment in Québec or the rest of Canada.
- They are not engaged in professional or commercial activities in Québec or the rest of Canada.
Exclusions
The GST, HST or QST that foreign representatives paid on real property purchased for personal purposes (such as a private residence) is not eligible for this rebate.
A partial rebate of the GST, HST or QST paid on housing may be available. See GST and QST Rebate for Owners of New or Substantially Renovated Housing.
Moreover, Canadian citizens and permanent residents of Canada cannot apply for a rebate of the taxes and duties paid on goods and services acquired for personal purposes, even if they perform duties for any of the previously mentioned entities. The same holds true for Canadian citizens posted abroad who return to Canada for a visit.
Refundable taxes and duties
With a few exceptions, rebates can be claimed on the following taxes:
- the GST and the HST
- the QST
- the fuel tax
- the specific tax on alcoholic beverages
- the tax on lodging
- the tax on insurance premiums
- the municipal tax for 9-1-1 service
- the specific duty on new tires
- the tobacco tax
With the exception of the GST and the HST, we grant rebates only on the taxes and duties prescribed by Québec legislation.
Details concerning tobacco products
Members of a diplomatic mission, consular post or office of a political division of a foreign state who hold positions with or are designated representatives of an international governmental organization can purchase tobacco products without paying the tobacco tax. The same holds true for their spouses and, in certain cases, other family members, if they meet certain requirements. The tobacco products must be purchased from one of the following distributors:
Authorized distributors
Phœnicia Diplomatiques 1692, avenue Letourneux Phone: 514 256-2227 | Beler Holdings 4050, Sladeview Crescent Phone: 905 569-1277 |
Under certain conditions, employees of prescribed non-governmental international organizations and their spouses are entitled to a rebate on the tobacco tax paid on tobacco products, regardless of where in Québec the products were purchased.
Details concerning alcoholic beverages
Members of a diplomatic mission, consular post or office of a political division of a foreign state who hold positions with or are designated representatives of an international governmental organization can purchase alcoholic beverages from the Société des alcools du Québec (SAQ) without paying the QST or the specific tax on alcoholic beverages. The same holds true for their spouses and, in certain cases, other family members, if they meet certain requirements. The alcoholic beverages must be purchased from the following outlet:
Centre de distribution spécialisé de Montréal 1947, rue des Futailles Phone: 514 254-6000, extension 5899, or 1 866 554-8686, extension 5899 Fax: 514 873-4104 |
For the purchase of alcoholic beverages, the department responsible for protocol at the Ministère des Relations internationales et de la Francophonie du Québec sends an order form to the authorized representatives of the diplomatic mission, consular post, office of a political division of a foreign state or international governmental organization. This form must be signed by an authorized representative and by the buyer, and bear the official seal of the diplomatic mission, consular post, office of a political division of a foreign state or international governmental organization. It must be given to the manager of the above-mentioned outlet at the time of purchase.
If a buyer purchases alcoholic beverages elsewhere in Quebec, they must pay the applicable taxes, but can claim a rebate of the taxes paid, under certain conditions.
Under certain conditions, non-Canadian employees of prescribed non-governmental international organizations and their spouses are entitled to a rebate of the taxes paid on alcoholic beverages, regardless of where in Québec the alcoholic beverages were purchased.
Rebate application
Several conditions must be met when applying for a rebate.
Filing due dates and processing times for rebate applications
You must file your rebate application within the two years following the date on which you paid the taxes and duties. You can file only one rebate application per calendar month, but it can cover several calendar months.
To avoid missing the deadline and to facilitate processing of your rebate application, you may wish to apply for this rebate at a regular frequency (for example, monthly or quarterly).
For instalment purchases of goods (see the definition of “instalment purchase” below), you can only include the GST, HST and QST in a rebate application after you pay taxes on goods. Proof of payment must be shown on the mandatory supporting documents.
Rebates are generally issued within 8 to 10 weeks for duly completed applications.
Instalment purchase
Purchase of a good possession of which is transferred to the buyer, but the transfer of ownership of which is delayed until the good is paid for in full.
Mandatory supporting documents
A duly completed rebate application must contain certain information and supporting documents.
Identification number
We assign an identification number to you the first time we process an application for a rebate of the QST or other taxes and duties prescribed by Québec legislation. You must include this identification number on all subsequent rebate applications.
Information required on invoices and other supporting documents
When filing your application, you must enclose photocopies of invoices and supporting documents for all purchases. The photocopies must show the following information:
- the supplier's name
- the date of the invoice
- the total invoice amount
- the amount of the taxes and duties paid if they are listed separately on the invoice, or a note stating that taxes and duties are included in the price
- the buyer's name, if the value of the goods and the services acquired exceeds $500 (before taxes and duties)
- a description of the goods and services on which taxes and duties were paid
Note that the photocopies will not be returned to you. You must keep adequate records and keep all original invoices and documents for six years after the end of the year to which they pertain.
While processing your application, we may ask you to provide additional documents, such as proof of payment of taxes or duties.
Payment by direct deposit
If you are entitled to a rebate and you have an account at a financial institution in Canada, we can deposit the rebate directly into your account.
To register for direct deposit, complete form LM-2-V, Request for Direct Deposit: Individuals in Business, Partnerships, Corporations and Other Legal Entities.
Rebate application forms
If you have a Québec mailing address, you can apply for a rebate by completing form FP-2498-V, Application for a Rebate of Taxes and Duties for a Foreign Representative, Diplomatic Mission, Consular Post, Office of a Political Division of a Foreign State, International Organization or Visiting Forces Unit.
If you have a mailing address in Canada outside Québec, you can apply for a GST/HST rebate by completing form GST498, GST/HST Rebate Application for Foreign Representatives, Diplomatic Missions, Consular Posts, International Organizations, or Visiting Forces Units.
If you are applying for a rebate of the specific tax on alcoholic beverages or the tobacco tax, you must also complete form LM-2498.A-V, Calculation of the Rebate of the Specific Tax on Alcoholic Beverages and the Tobacco Tax (for a Foreign Representative, Diplomatic Mission, Consular Post, Office of a Political Division of a Foreign State or International Organization), and enclose it with form FP-2498-V.
Suggestions
- Read the instructions in these forms carefully as they contain tables that can be used to calculate the amount of taxes and duties paid.
- The GST, HST, QST and certain other taxes and duties are usually shown separately on invoices. However, certain other taxes for which you can claim a rebate may be included in the purchase price, such as the fuel tax, the specific tax on alcoholic beverages, and the municipal tax for 9-1-1 service.
- To facilitate the processing of your rebate application, please arrange your invoices in chronological order and enter the required information in the same order on form FP-2498-V. If you prepare your own table, please use the format provided in form FP-2498-V as a guide.
Sending your application
Send your rebate application to the following address:
Revenu Québec 3800, rue de Marly |