Services rendered by a moving company are subject to goods and services tax (GST) and Québec sales tax (QST). A moving company that renders services in Québec must therefore be registered for GST/HST and QST purposes, collect the taxes and remit them to us using form FP-500-V, Detailed Calculations, or form FPZ-500-V, GST/HST – QST Return. In addition, the company can claim an input tax credit (ITC) for the GST paid and an input tax refund (ITR) for the QST paid in respect of any property or services acquired to render the moving services.
However, a business that is a small supplier does not have to register for GST/HST and QST purposes or collect and remit the taxes, but it also cannot claim ITCs and ITRs for the taxes paid in respect of its purchases. A business is considered a small supplier if its total taxable sales in a particular calendar quarter and in the four calendar quarters immediately preceding that quarter are $30,000 or less. Its total taxable sales consist of all sales made worldwide during those periods by the business and its associates.
Note that if the invoices issued by the moving company to its customers show the type of services rendered, the amount of taxes collected and the company's GST/HST and QST registration numbers, customers can use the invoices to support their claims for a deduction for moving expenses or for an ITC or ITR, as applicable.