E-Commerce: Additional Suppliers Outside Québec Now Required to Collect QST
Effective September 1, 2019, certain suppliers outside Québec that are goods and services tax/harmonized sales tax (GST/HST) registrants and certain operators of digital platforms are required to be Québec sales tax (QST) registrants.
Those suppliers must immediately begin to collect QST and remit it to Revenu Québec if they sell or lease:
- services (film rentals, music distribution, etc.);
- corporeal movable property (clothing, desks, construction materials, etc.); or
- incorporeal movable property (e-books, patents, copyrights, etc.).
This new measure is aimed at suppliers:
- who do not have an establishment in Québec and do not carry on a business in Québec;
- who are not already QST registrants;
- the total value of whose taxable supplies made in Québec (other than supplies of services or incorporeal movable property made through digital platforms) is more than $30,000 per year; and
- who supply services or movable property to persons usually resident in Québec who are not QST registrants.
Operators of digital platforms are subject to similar rules but only with respect to services or incorporeal movable property.
A major step towards tax fairness!
The taxation challenges relating to e-commerce and the growth in the number of online transactions are key issues for our organization. This measure demonstrates our willingness to address such new challenges and to actively work to ensure tax fairness in all sectors.
For details, go to Suppliers Outside Québec.