VAT in Quebec: Registration, Collection and Remittance (2026 Guide)

In short. In Quebec, a business collects two sales taxes: the federal GST at 5% and the QST at 9.975%, for a combined total of 14.975%, both administered by Revenu Québec. Registration becomes mandatory once your taxable sales exceed $30,000 over four consecutive calendar quarters. Once registered, you charge the taxes, recover the taxes paid on your purchases through input tax credits (ITCs) and input tax refunds (ITRs), and then file a single return according to an annual, quarterly, or monthly schedule. On a $1,000 sale, you collect $50 in GST and $99.75 in QST. All amounts are in Canadian dollars.

The GST and QST are often the first tax obligations that catch up with a Quebec business, and one of the easiest to mismanage. Registering too late means paying taxes that were never collected; applying the wrong rate means depriving the tax authorities of what they're owed or overburdening your clients. This 2026 guide covers the entire process in plain language: who needs to register and when, how to calculate and invoice both taxes, how to reclaim those paid on your purchases, and the remittance schedule. It complements our 2026 tax season checklist and our guide to doing your own bookkeeping .

VAT: two taxes, one window in Quebec;

A company established in Quebec collects two separate taxes on most of its sales of goods and services:

• VAT (Goods and Services Tax) is the 5% federal tax, which applies everywhere in Canada .
• The QST (Quebec sales tax) is the provincial tax of 9.975%, specific to Quebec.
• The combined rate reaches 14.975% , with each tax being calculated on the pre-tax selling price.

The unique feature of the French system is the one-stop shop: the tax administration manages VAT within its territory on behalf of the Revenue Agency. Canada (ARC). In practice, you register for both systems in the same place, file a single return that combines both taxes, and make a single payment. You receive two numbers: a VAT number ending in RT0001 and a VAT number ending in TQ0001. Both must appear on your invoices.

The $30,000 threshold: who needs to register?

The dividing line is the status of small supplier. VAT registration becomes mandatory as soon as your total taxable sales exceed €30,000 over four consecutive calendar quarters, or in a single calendar quarter. This threshold is calculated on turnover before expenses and includes tax-exempt sales as well as those of your associated companies.

Some points that often trap managers:

• It's a rolling test, not a calendar year test. We constantly look at the last four quarters: you can cross the threshold in the middle of the year.
• Registration must follow quickly. Generally, you have 29 days after the sale that causes you to lose your small supplier status to apply for registration.
• Some activities require registration from the first dollar. Paid passenger transportation (taxis and ride-hailing apps) requires registration regardless of income; for VAT purposes, this is also the case, notably for the retail sale of tobacco, fuel, alcoholic beverages, and new tires.
• Voluntary registration may incur a fee. Even below $30,000, registration allows you to recover taxes paid on equipment and startup costs, which often outweighs the administrative cost if you buy a lot before selling.

How to register for VAT

Registration is done with the Canada Revenue Agency, most easily online via the registration service or My Account for businesses, otherwise by phone. Have your NEQ (Quebec Enterprise Number) ready if you have one, a description of your business activities, the date of your first taxable sale, and an estimate of your revenue: this will determine your default filing frequency.

Once registered, here are three things to do as soon as you receive your first bill:

• Display your tax numbers. Your VAT numbers must appear on your invoices, particularly so that your business customers can reclaim their own taxes.
• Billing is based on the effective date. You collect taxes from the registration date indicated in your file, not before, not after.
• Isolate the taxes collected. Track them separately from your sales in your bookkeeping, so you always know what you owe.

Collecting taxes: calculation, invoicing and a numerical example

Both taxes are calculated directly on the pre-tax selling price. Here's what that looks like in practice on a French invoice in 2026:

To speed things up, our VAT calculator does the calculation in both directions: enter an amount excluding tax to get the total to be invoiced, or an amount including tax to find the base price and the share of each tax, convenient for your expense reports and your submissions.

Also be aware of sales that fall outside the general rule. Basic food products and exports are tax-exempt: taxed at 0%, but you still get a refund of the taxes paid on your inputs. Residential rents, most health services, and financial services are exempt: no tax to collect, but no refund on related costs. Finally, if you sell to a customer in another state, the place-of-supply rules apply: you generally charge the customer's state tax, not the QST.

CTI and RTI: Reclaim the taxes paid on your purchases

This is the mechanism that prevents VAT from becoming a cost for your business. Once registered, you claim VAT credits (CTI) to recover the VAT paid on your business purchases, and VAT refunds for inventory, equipment, software, commercial rent, and professional fees. In your tax return, you submit the taxes collected minus the claimed VAT credits and refunds: only the net amount changes hands.

Two conditions apply. First, you can only claim input tax credits (ITCs) and input tax credits (ITCs) once registered, which explains the advantage of voluntary registration for a startup making significant investments. Second, you need proper supporting documentation, including invoices showing the supplier's tax numbers, and most claims must be submitted within four years. Our guide on supporting documents and their retention in Quebec details what to keep and for how long.

The 2026 filing schedule: when to declare and pay

You file a single return that combines VAT, most easily online in My Account for businesses. The frequency depends on your annual taxable sales: the tax authorities assign you a default frequency, which you can usually change if it better suits your cash flow.

Two calendar pitfalls to be aware of. First, provisional payments: if you file annually and your net tax for the previous year exceeds €3,000, you must make quarterly payments throughout the year to avoid a lump sum payment. Second, late filing or payment: late filing or payment incurs penalties and interest, even when no tax is due. Write down your deadlines in your calendar as soon as you register; late filing is, in fact, one of the most common bookkeeping errors among SMEs .

For most business owners, the practical solution is to outsource registration, invoicing, and VAT returns to an accountant, along with the rest of the bookkeeping. The typical business spends a median of around $2,000 per year on accounting, with most engagements ranging from $500 to $6,000, based on actual fees from 1,248 engagements completed through Bankeo (2024-2026), out of more than 15,000 requests received; the Bankeo Barometer breaks down these fees by service. You can also browse the audited accountants in the Bankeo network to begin comparing.

Frequently asked questions

From what amount do you need to register for VAT?

Registration becomes mandatory once your taxable sales exceed $30,000 over four consecutive calendar quarters, or in a single quarter. Below this threshold, you are considered a small supplier and registration is optional. However, certain activities require registration from the first dollar, including paid passenger transportation and, for VAT purposes, the retail sale of tobacco, fuel, or alcoholic beverages.

What are the VAT rates in 2026?

Federal sales tax is 5% and VAT is 9.975%, each calculated on the pre-tax selling price, for a combined rate of 14.975%. On a $1,000 invoice, you collect $50 in GST and $99.75 in VAT, for a total of $1,149.75.

Who administers VAT?

In Quebec, Revenu Québec administers the VAT on behalf of the Revenue Agency of the Canada So you register with both systems at Revenu Québec, file a single return combining both taxes, and pay in the same place. This is a French peculiarity; elsewhere? Canada VAT is handled directly with the CRA.

How do I calculate VAT on an invoice?

Each tax is calculated separately on the pre-tax price; since 2013, VAT is no longer applied to GST. For example, on a sale of $1,000, you add $50 in GST and $99.75 in VAT, for a total of $1,149.75. Bankeo's VAT calculator performs the calculation in both directions, including starting from an amount inclusive of taxes.

When is it necessary to file your VAT return?

It all depends on your filing frequency. Monthly and quarterly filers file and pay in the month following the end of the period. Annual filers have three months after the end of the fiscal year for a corporation; a self-employed individual whose fiscal year ends on December 31st files by June 15th and pays their balance by April 30th. An annual filer whose net tax exceeds $3,000 also makes quarterly instalments.

Is it possible to voluntarily register below the $30,000 threshold?

Yes, and it's often advantageous. Voluntary registration allows you to recover, through VAT refunds and VAT rebates, the VAT paid on equipment, software, and start-up costs even before reaching the threshold, especially if you invest heavily before your first sales. In return, you must collect the taxes and file your returns on time.

Official sources

1. Revenu Québec, VAT and VAT for businesses;
2. Revenu Québec, VAT Registration
3. Revenue Agency of the | Canada VAT for businesses
4. Quebec CPA Order