In the 2018-2019 Quebec Budget, the Minister of Finance announced the implementation of new QST registration requirements for suppliers located outside Quebec who:
- make taxable supplies in Quebec to consumers; or
- operate a digital platform and meet all of the below criteria:
- do not have a QST registration number that includes the letters “TQ” (TQ registration number),
- enable suppliers outside Quebec to make taxable supplies of incorporeal movable property or services in Quebec to consumers, and
- control the billing and terms and conditions of the transactions between the suppliers and the consumers.
In general, a consumer is an individual who acquires property or services at his/her expense for his/her personal consumption.
Revenu Quebec has implemented a simplified QST system with respect to registration and reporting for suppliers located outside Quebec.
The new QST registration requirements are being implemented in two phases:
1. Mandatory registration on January 1, 2019 for suppliers located outside Canada that are not registered for GST/HST and meet the following criteria:
- have no physical or significant presence in Quebec;
- are not already registered for the QST under the regular QST registration system;
- make over $30,000 in taxable sales to consumers in Quebec; and
- supply services and intangibles in Quebec to consumers
2. Mandatory registration on September 1, 2019 for suppliers located outside Quebec that are registered for GST/HST and meet the following criteria:
- are not already registered for the QST under the regular QST registration system;
- make over $30,000 in taxable sales to consumers in Quebec; and
- supply services, intangibles and goods in Quebec to consumers.
The mandatory registration on September 1, 2019 also applies to operators of digital platforms that supply services and intangibles in Quebec to consumers.
Registered suppliers will have to collect and remit the applicable QST on their taxable sales made to Specified Quebec Consumers (“SQC”). A SQC is a person who resides in Quebec and who is not registered for QST.
The information in this release is of a general nature. For the purposes of your particular situation, you would be advised to refer to the applicable provisions of the law and, if necessary, consult a sales tax professional.
PSB Boisjoli will gladly assist you with the implications of this new QST registration requirements for your particular business.