Coronavirus (COVID-19)

Click Coronavirus Disease (COVID-19) to see whether the measures adopted by Revenu Québec apply to the information on this page.

Published

Consequences of Changes to the Organizational Structure of an Organization That Has Been Designated as a Municipality or as a Hospital Autority

An organization that has been designated as a municipality, that is determined to be a municipality or that has been designated as a hospital authority must notify Revenu Québec of any changes to its organizational structure, where such changes are the result of an amalgamation or a merger with another organization, or the result of the organization becoming incorporated.

This requirement applies to organizations such as

  • non-profit organizations, charities, housing cooperatives and water haulers that have been designated as municipalities because they provide municipal services;
  • public libraries, waste management bodies and volunteer fire-fighting organizations that have been determined to be municipalities;
  • hospitals and health and social services centres that have been designated as hospital authorities because they operate public hospitals.

For GST and QST purposes, the new organization created as a result of the amalgamation, merger or incorporation is generally considered to be a separate person from any of the former organizations.

In addition, if the new organization makes taxable supplies of property or services in Québec, it must register for the GST and QST, unless it is a small supplier. It can also file an application to have its branches or divisions file separate returns. In some cases, the new organization can keep the GST and QST registration numbers of one of the former organizations.

To register the new organization for the GST and QST, use the Registering for Revenu Québec Files online service or form LM-1-V, Application for Registration. For more information, refer to the brochure Should I Register with Revenu Québec? (IN-202-V).

Note that an organization that is party to a merger or an amalgamation, or that has become incorporated, must generally cancel its GST and QST registration and file its GST and QST returns for the periods preceding the merger, amalgamation or incorporation. The GST and QST registration of any branches or divisions must also be cancelled. The request for cancellation must be made by filing form LM-1.A-V, Request for Cancellation or Variation of Registration. For more information, refer to GST/HST Memorandum 2-7, Cancellation of Registration, which is available on the website of the Canada Revenue Agency.

Status of the new organization

An organization that was previously designated as a municipality, determined to be a municipality or designated as a hospital authority loses that status when a new organization is created as a result of that organization becoming incorporated or party to a merger or an amalgamation.

The new organization must therefore apply to be designated as a municipality, to be determined to be a municipality or to be designated as a hospital authority in order to be entitled to public service body rebates. Note that in order for certain supplies it makes to be exempt from GST and QST, in the same way that such supplies made by a municipality or a public institution are exempt from GST and QST, the new organization must be determined to be a municipality or designated as a hospital authority.

The organization must send its written application, along with supporting documents, to the following address:

Directeur des taxes à la consommation
Direction générale de la législation et du registraire des entreprises
Revenu Québec
3800, rue de Marly, secteur 5-2-2
Québec (Québec)  G1X 4A5

GST, QST and registered charities

Some organizations that are designated as municipalities, determined to be municipalities or designated as hospital authorities for GST and QST purposes are also registered charities for income tax purposes. An organization that merges with a registered charity must inform Revenu Québec of the merger.

Fair. For all.

One vision. Concrete actions.

Read all about how we work to support and inform you. Our vision and values guide us as we carry out our role.

Veuillez patienter