On April 8, 2026, we published a Tax News article about a change to the application of the GST/HST and QST to mutual fund trailing commissions. It was published further to a similar announcement by the Canada Revenue Agency (CRA) regarding the GST/HST.

However, on May 26, 2026, the CRA announced that the change would be postponed. Specifically, the CRA will ensure that the GST/HST applies to trailing commissions paid in exchange for services provided by brokers on or after January 1, 2028, rather than as of July 1, 2026, as originally planned.

Since the QST system is similar to the GST/HST system in this regard, the effective date for the application of the QST will likewise be postponed.

However, early implementation of this change is still encouraged. Thus, brokers who collect GST/HST and QST on trailing commissions before January 1, 2028, will be able to claim input tax credits (ITCs) and input tax refunds (ITRs) if the taxes they paid on their inputs are attributable to the relevant supplies of services.

Note that, until January 1, 2028, Revenu Québec will ensure that any broker claiming ITCs and ITRs in respect of inputs related to these supplies has also collected and remitted the applicable GST/HST and QST.

As a result of this change, some brokers may need to register for the GST/HST and QST. For information about registration, see IN-202-V, Registering With Revenu Québec.

For more information about the CRA's announcement, see GST/HST Notice 344, Application of the GST/HST to Mutual Fund Trailing Commissions.