Self-Employed Tax Guide for Quebec
In Quebec, Revenu Québec (not the CRA) administers both the 5% GST and the 9.975% QST for most businesses. You register for both with Revenu Québec, file one combined return, and recover GST as ITCs and QST as ITRs.
Quebec Tax Structure
How your business purchases are taxed at the register.
Quebec is the only province where the provincial tax agency also runs the federal sales tax. The CRA says that if your business is physically located in Quebec, you register for the GST with Revenu Québec, file your GST returns with Revenu Québec and use its forms. Revenu Québec also administers the Québec sales tax (QST) at 9.975%. For most self-employed people in Quebec that means one agency and one return that reports both taxes. The CRA keeps only a narrow group, mainly selected listed financial institutions.
The QST is calculated on the selling price before GST, so there is no tax on tax: a $100 purchase carries $5.00 GST and $9.98 QST. The two taxes are recovered separately. GST you pay on business purchases comes back as an input tax credit (ITC), and QST comes back as an input tax refund (ITR). You claim both on the same return, on separate lines, and each claim needs a receipt that supports that tax.
One registration test covers both taxes. You are a small supplier, and don't have to register, as long as your total taxable supplies (including those of associates) are $30,000 or less in a single calendar quarter and over the last four consecutive quarters. Once registered, you have two numbers: a GST number and a QST number made of 10 digits, the letters TQ and four more digits. You can register voluntarily below the threshold to claim ITCs and ITRs, but you then charge both taxes and must stay registered for at least one year.
ScanForTax reads the GST and QST lines on each receipt and keeps them as separate amounts, so your ITC total and your ITR total don't get mixed. It also assigns each expense, from office expenses to advertising, to a T2125 line. It does not file your return with Revenu Québec and doesn't know whether you are registered.
Tax Calculation Examples
See exactly how taxes break down on common business purchases in Quebec.
$1,500 Laptop from a Quebec Retailer
Quebec
QST is 9.975% of $1,500 (not of $1,575). If the laptop is used more than 50% for business, you claim the $75 GST as an ITC and the $149.63 QST as an ITR on the same return. Your capital cost for CCA is $1,500.
$250 Business Cards and Flyers from a Quebec Printer
Quebec
The total is over $100, so the invoice must show the printer's GST and QST registration numbers for you to claim the $12.50 ITC and the $24.94 ITR. A QST number is 10 digits, then TQ, then 4 digits.
$50/month Software Subscription from a Supplier Outside Quebec
Quebec
A supplier outside Quebec registered under the specified (simplified) QST system charged you QST because you didn't give it your QST number. That QST can't be claimed as an ITR, and GST paid to a simplified-regime GST supplier isn't eligible for an ITC. Give the supplier your numbers before you buy.
How to Recover Tax in Quebec
Your Input Tax Credit (ITC) filing roadmap.
Collect
Keep receipts showing the GST and QST registration numbers
Categorize
Match each expense to a T2125 line item
File & Recover
Claim ITCs (GST) and ITRs (QST) on your Revenu Québec return
For a registered self-employed person in Quebec, recovery takes three steps. First, keep receipts that show the GST and QST separately and, from $100 up, the supplier's GST and QST registration numbers. Second, total the GST you paid (your ITCs) and the QST you paid (your ITRs) separately. Third, report both on the GST/HST and QST return you file with Revenu Québec. Your GST and QST filing frequencies are always the same, because you must use the same fiscal year for both taxes. An individual with business income who files annually with a December 31 year-end has until June 15 to file, but any GST or QST owing must be paid by April 30. If you missed a claim, you generally have four years to make it. On your T2125, deduct expenses such as professional fees and telephone and utilities net of the ITCs and ITRs you claimed.
Quebec-Specific Tax Rules
2 advantages, 3 things to watch
One Agency, One Return for GST and QST
AdvantageIf your business is physically located in Quebec, the CRA sends you to Revenu Québec for the GST as well as the QST. You register for both there, you get two numbers (GST and QST), and you report both taxes on one GST/HST and QST return. Your filing frequency is the same for both, and you must use the same fiscal year for both.
CRA: GST/HST for a business in Quebec; Revenu Québec: Filing FrequencyReceipt Details You Need to Claim an ITR
Heads upRevenu Québec sets three tiers based on the total including taxes. Under $100: the supplier's name, the date and the total, plus the QST amount and a description of the item for QST purposes. $100 to $499.99: add the supplier's GST and QST registration numbers and the tax amounts. $500 or more: also add your name (or your agent's) and the payment terms. A receipt without the supplier's QST number on a purchase of $100 or more doesn't support an ITR.
Revenu Québec: Preparing InvoicesQST Paid to Out-of-Quebec Digital Suppliers Isn't Refundable
Heads upMany foreign and out-of-province software, app and platform providers are registered under Quebec's specified (simplified) QST system. You can't claim an ITR for QST they charge you, even for business use. To avoid paying it, give them your QST number (the one with TQ) before you buy. The GST works the same way: GST paid to a business registered under the simplified GST/HST regime isn't eligible for an ITC.
Revenu Québec: Claiming ITCs and ITRs; CRA Guide T4002Quick Method Rates for Quebec Businesses
AdvantageIf your annual worldwide taxable supplies are $400,000 or less, you can elect the quick method. Instead of tracking ITCs and ITRs on each purchase, you remit a fixed percentage of your taxable sales including taxes. Service businesses remit 3.6% for GST and 6.6% for QST. Resellers whose purchases of goods for resale are at least 40% of taxable sales remit 1.8% and 3.4%. You also get a 1% reduction on the first $30,000 (GST) and the first $31,421 (QST) of eligible sales. You still claim ITCs and ITRs on capital property such as computers and vehicles, but not on most other purchases.
Revenu Québec: Quick Method – Applicable Rates; CRA RC4058Construction Subcontractors Need an Attestation de Revenu Québec
Heads upFor construction work in Quebec that requires a licence under the Building Act, once a contractor's contracts with a subcontractor total $25,000 or more before tax in a calendar year, the subcontractor must hold a valid attestation de Revenu Québec and give the contractor a copy. The contractor must verify that it is authentic. Either party can face a penalty for not complying.
Revenu Québec: Construction Contracts (attestation)Popular Professions in Quebec
See profession-specific tax guides for self-employed workers in Quebec.
Provincial Resources
Official government and support links for Quebec self-employed workers.
Revenu Québec: GST/HST and QST
revenuquebec.caRevenu Québec's hub for registering, collecting, claiming ITCs and ITRs, and filing the combined return.
Revenu Québec: Preparing Invoices
revenuquebec.caThe information an invoice must show at each amount tier for GST and QST claims.
Revenu Québec: Claiming ITCs and ITRs
revenuquebec.caConditions for recovering GST and QST, including capital property and home office rules.
Revenu Québec: Quick Method of Accounting
revenuquebec.caEligibility, remittance rates and the election for the GST and QST quick method.
CRA: Registering a Business Located in Quebec
canada.caThe CRA page confirming that Quebec-based businesses register and file GST/HST with Revenu Québec.
Frequently Asked Questions
Do I register for GST with the CRA and for QST with Revenu Québec?
What is the difference between an ITC and an ITR?
Can I claim the QST on my receipts as an input tax credit?
A receipt is missing the supplier's QST number. Can I still claim the QST?
When are my GST and QST returns due if I file annually?
Do the restricted ITRs for large businesses affect me?
Claiming back the sales tax you pay in Quebec: GST/HST input tax credits guide →
Key Expense Categories
Common T2125 deductions for Quebec self-employed workers.
Related Province Guides
Track GST + QST on every Quebec receipt
ScanForTax separates the recoverable sales tax from the rest, so your Quebec ITC totals are ready when you file. First 15 scans free, no credit card required.