Do I need to register for GST and QST in Quebec?

The short answer

If your worldwide taxable sales stay at or below $30,000, you are usually a small supplier and you do not have to register for or charge GST and QST. Once you go over $30,000, registration becomes mandatory. In Quebec the two taxes are administered separately, GST (5%) by the Canada Revenue Agency and QST (9.975%) by Revenu Québec, but you can register for both at the same time.

How the $30,000 threshold actually works

The threshold is measured over a moving window, not a single tax year. You must register once your total taxable sales, yours and those of your associates, go over $30,000 in a single calendar quarter, or across the four previous calendar quarters combined. "Taxable sales" means your worldwide taxable supplies before tax, and it includes zero-rated sales. It does not include the GST and QST you charge, financial services, or sales of capital property.

Two consequences catch people off guard:

• You can cross the line mid-year. The moment your rolling four-quarter total passes $30,000, you have to register, even if the calendar year is not over.
• Zero-rated sales still count toward the threshold, even though you charge 0% tax on them.

Ride-share and taxi drivers: register from day one

If you drive for Uber, Lyft, or a taxi in Quebec, the small-supplier exemption does not apply. Commercial ride-share and taxi drivers must be registered for GST and QST regardless of how much they earn, and before their first trip. This is the single most common registration mistake we see with new drivers.

Should you register before you have to?

You can register voluntarily even as a small supplier. The trade-off: you start charging tax to your customers, but you also get to claim input tax credits (GST) and input tax refunds (QST) on the tax you pay on business purchases. For a business with real start-up costs or equipment, voluntary registration can put money back in your pocket. For a side gig with few expenses, it may just add paperwork.

What changes once you are registered

• You charge 5% GST and 9.975% QST on your taxable sales.
• You file GST and QST returns, monthly, quarterly, or annually depending on your sales volume.
• You keep the tax you collect separate; it is not your money.
• You claim back the GST and QST you paid on business expenses.

Not sure which side of the line you are on, or when you crossed it? That is exactly the kind of thing we track for our clients so nothing slips.