Invoicing and taxes in Québec (GST/QST) for solopreneurs

What this guide covers (and what it doesn't)

This guide covers sales taxes — GST and QST — and invoicing for a self-employed worker or one-person business in Québec. Income tax, income-tax instalments and source deductions are separate topics, out of its scope.

The two taxes and their rates

In Québec, GST applies at 5% and QST at 9.975% on the price of taxable supplies, unless the supply is exempt or zero-rated. The QST is calculated at 9.975% on the selling price excluding the GST (Revenu Québec — basic rules; calculating the taxes).

Once registered, the cycle is always the same: you collect the taxes from your clients, you calculate your input tax credits (ITCs) and input tax refunds (ITRs) on your business purchases, and you file a return for every reporting period (Revenu Québec).

The magic number: $30,000 and the "small supplier"

You are considered a small supplier if the total taxable supplies (including zero-rated supplies) made worldwide by you and your associates do not exceed $30,000 in a given calendar quarter or over the four preceding calendar quarters. As long as that holds, you are not required to register for or collect the GST and QST. Once the total exceeds $30,000, registration becomes mandatory (Revenu Québec — small suppliers; registering).

The calculation excludes the GST and QST amounts themselves, financial services, and sales of capital property or the goodwill of the business.

Registering voluntarily: the ITC/ITR trade-off

Even under the threshold, you can choose to register. You must then collect the taxes on each of your taxable supplies and remit them to Revenu Québec — but in exchange, you can claim ITCs and ITRs on purchases made to produce those supplies. Note: a small supplier who registers for the QST must also register for the GST/HST, and must remain registered for at least one year (Revenu Québec — small suppliers).

Your invoices: no prescribed template, but proof is required

The GST and QST systems impose no special invoice format — except for sectors under mandatory billing, such as restaurants and remunerated passenger transport (taxis). But as a registrant, your purchase invoices and other supporting documents must contain the prescribed information to justify the ITCs and ITRs you claim. Your suppliers must provide their registration numbers in writing at your request — and your registrant clients can demand yours the same way (Revenu Québec — preparing invoices).

The rhythm of your returns

Revenu Québec assigns you a filing frequency — monthly, quarterly or annual — based on your and your associates' total annual taxable sales made in Canada; it appears on your registration confirmation, and a chosen frequency must normally be kept for at least one year. Monthly and quarterly returns must be received no later than one month after the end of the period; annual returns, generally no later than three months after the end of the period (Revenu Québec — filing frequency).

If you file annually, you must generally remit the GST and QST in four instalments — unless the net tax you expect to pay for the current year, or paid for the previous year, is under $3,000 (Revenu Québec — instalments).

Where to start

1. Add up your taxable supplies over the last four calendar quarters. Over $30,000? Registration is mandatory.
2. Under the threshold: weigh voluntary registration, especially if your clientele is mostly B2B.
3. Get in the habit of printing your GST and QST numbers on every invoice from the day you register — your registrant clients will need them.
4. Keep every purchase receipt: no supporting documents, no ITCs/ITRs.
5. Put your filing deadlines in your calendar based on the frequency Revenu Québec assigned you.