Digital Economy: Changes in QST Collection

As of July 1, the tax situation is fairer for our local businesses!

In the budget presented on April 19, 2021, the Minister of Finance of Canada announced new rules to expand the obligation of businesses operating in the digital economy to collect the GST. While the new federal measures resemble those respecting the QST that have been in effect since 2019, the rules announced by the federal government have a larger scope. As a result, Québec has made changes to harmonize the QST system with the GST system.

A general overview of the changes in effect as of July 1, 2021, for individuals and businesses in Québec is presented below.

Corporeal movable property (tangible personal property)

Change as of July 1, 2021 Example
The QST must be collected on the purchase of certain corporeal movable property purchased (directly or through a platform) from foreign suppliers and delivered in Québec. As of July 1, if you purchase a pair of shoes from a vendor outside Canada through a platform such as Amazon, you will be charged QST either by the vendor or by the platform.

Corporeal movable property is movable property that exists in physical form (other than money), such as clothing, desks, computers, boats or building materials.

Short-term accommodations

Change as of July 1, 2021 Example
The QST must be collected on the rental of short-term accommodations and on associated service charges if the owner of the accommodation unit is not registered for the QST and the accommodations are rented through an accommodation platform. As of July 1, if you rent a house through a platform such as Airbnb, you will pay the QST even if the owner is a small supplier (meaning they are not registered for the QST) because the platform will automatically charge the tax.

The Québec government is harmonizing provincial measures with the federal ones with a view to leveling the playing field for Québec businesses that have had to collect the QST and certain foreign businesses that have not been required to do so.

For more information, see Suppliers Outside Québec.

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