Tax rate by region Quebec

Select region

The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Quebec utilizes a dual sales tax structure, layering a 9.975% Quebec Sales Tax (QST) alongside Canada’s federal 5% Goods and Services Tax (GST) for a combined effective rate of 14.975% on digital products. For non-resident digital suppliers, registration under both the federal simplified GST framework and the specialized provincial QST regime is triggered once annual sales to local consumers reach a matching CAD 30,000 threshold. Under this specialized regime, businesses file QST returns on a default quarterly basis through Revenu Québec, with electronic filings and payments due within one month of the reporting period’s conclusion.

Mosaic image

Quebec

Quebec applies the Quebec Sales Tax (QST) at 9.975% on top of the federal 5% GST. QST is administered by Revenu Québec. Combined effective rate: 14.975%. QST applies to digital products delivered electronically. 

Official government link: Canada Revenue Agency

14.975%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Federal GST: CAD 30,000 annual sales.

QST (non-resident digital): CAD 30,000 in supplies to specified Quebec consumers over 12 months.

Online registration possible

Yes

Local representative needed

No

Registration procedure

Federal GST via CRA online;

QST via Revenu Québec — non-residents use the Specified QST regime online registration

List of digital and electronic services liable for tax

Digital products and services delivered electronically (CRA)

Penalties

Federal: late filing 1% + 0,25%/month.

QST: similar late-filing and late-payment penalties per Revenu Québec

Registration threshold

CAD 30.000 annual sales

Filing interval

Federal GST: by revenue tier.

QST: quarterly (default for Specified QST regime)

Filing deadline

Federal: one month after period end.

QST: one month after end of reporting period

E-invoicing requirements

Not mandatory

Record keeping

6 years

How-To Guides: Quebec Island SaaS VAT

Step: 1 Threshold

Effective July 1, 2021, Canada requires the following non-resident vendors to register for and collect the federal GST/HST if their sales exceed CAD 30,000 in a 12-month period

 

Registration is mandatory once this threshold is met through sales to “Specified Quebec Consumers” (B2C/unregistered persons).

Step: 2 Business Registration

Register online via Revenu Québec’s “Registration service for suppliers outside Québec.” If you also meet the federal threshold, you must register for the Simplified GST/HST via the Canada Revenue Agency (CRA).

 

Non-resident suppliers must register for QST via Revenu Québec’s specified system. If they also meet federal requirements, they must separately register for GST/HST under the CRA simplified regime

Step: 3 TIN/VAT Number

You will receive a QST Registration Number (format: 1234567890TQ0001) from Revenu Québec and a GST Business Number from the CRA.

Step: 1 Standard Rate

The sales tax rate is 14.975% (5% Federal GST + 9.975% Provincial QST).

Step: 2 Rate Formula

To calculate your tax amounts, please use the following formula:

 

Tax Amount = Net Price X 14.975%

Step: 3 Reverse Charge (B2B)

Applies to cross-border B2B sales. If the Quebec business provides a valid QST/GST registration number, the non-resident supplier does not charge tax. The buyer must self-assess and report the tax.

Step: 1 Selling B2C

You must charge the full 14.975% tax to private consumers and non-registered businesses. You must verify residency using two non-conflicting pieces of evidence (e.g., billing address, IP address, or bank coordinates).

Step: 2 Selling B2B

Tax is not charged if the buyer provides a valid QST/GST number. You must validate these numbers via the official registries.

Step: 3 Invoice Requirements

Invoices must include:

  • Supplier name

  • QST/GST number

  • Invoice date

  • Sequential number

  • Description of services

  • Total amount

  • Tax rate/amount per tax type.

Note: Under Quebec’s Charter of the French Language, B2C invoices should be provided in French unless the consumer requests otherwise.

Step: 1 Filing Interval

Taxes are generally filed quarterly for the specified (simplified) system.

Step: 2 Filing Deadline

The filing deadline is the last day of the month following the end of the calendar quarter (e.g., April 30 for the Jan–Mar period).

 

Step: 3 Submission

File QST returns via the Revenu Québec online portal. GST is filed via the CRA My Business portal. Payments can be made via wire transfer or online banking in CAD or USD (for QST).

Step: 4 Record Keeping

Tax records should be kept for a minimum of 6 years from the end of the latest year to which they relate.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Quebec’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

Talk to an Expert
Mosaic image
en_USEnglish
es_ESEspañol pt_PTPortuguês pt_BRPortuguês do Brasil fr_FRFrançais it_ITItaliano de_DEDeutsch nl_NLNederlands pl_PLPolski ro_RORomână ukУкраїнська zh_CN简体中文 ja日本語 ko_KR한국어 en_USEnglish