GST/QST Taxes
Tax registration when starting a business: The $30,000 threshold explained
July 23, 2026
At a Glance. you can recover the taxes paid on your purchases through ITCs and ITRs
The $30,000 threshold is probably the most important tax figure during the first twelve months of a Quebec business. Exceed it without realizing it, and Revenu Québec may claim taxes from you that you never billed; register at the right time, and you can even recover the taxes paid on your startup expenses. This 2026 guide explains the small supplier rule in plain language, then provides a simple method, a four-step rolling calculator, to project the exact date when registration will become mandatory. For the full cycle (collection, ITC and ITR, refunds), see our Guide to GST/QST for Businesses in Quebec.
Both the GST (federal) and QST (Quebec) systems have the same entry threshold: as long as you are a small supplier, registration is optional. You are considered a small supplier if the total of your taxable supplies does not exceed $30,000 over four consecutive calendar quarters, nor in any single calendar quarter.
The details of the calculation often surprise startups:
Certain businesses are not eligible for small supplier status. Taxi drivers and drivers of for-hire passenger transport services must register as soon as they earn their first dollar of revenue. As for the QST, the retail sale of tobacco, fuel, alcoholic beverages, new tires, or motor vehicles also requires registration, regardless of sales volume. If in doubt, check your status with Revenu Québec before making your first sale.
The exact time when you must start charging GST and QST depends on how you cross the threshold. Federal and Quebec rules are harmonized on this point, and the two scenarios do not trigger the same date.
| Scenario | End of Small Supplier Status | First Sale Subject to Tax | Registration Request |
|---|---|---|---|
| More than $30,000 in a single calendar quarter | Immediate | Any sale that causes the threshold to be exceeded is already taxable | Within 29 days of this sale |
| Total revenue exceeding $30,000 over four consecutive quarters (no single quarter exceeding this amount) | At the end of the month following the fourth quarter | The first sale after the grace period | Within 29 days of that first sale |
In Quebec, the process itself is simple: Revenu Québec administers the GST and QST for most businesses in the province. A single online registration through Revenu Québec’s business services will provide you with your GST number and QST number, both of which must appear on your invoices.
Late registration can be costly. Revenu Québec may retroactively register you as of the date you ceased to be a small supplier: the taxes you should have collected remain due even if your invoices did not mention them. These taxes are then deducted directly from your profit margin, along with potential interest and penalties. Projecting the date you’ll exceed the threshold helps protect your cash flow.
No need for specialized software: a spreadsheet and your sales forecasts are all you need to turn the “small supplier rule” into a forecasting tool. Here’s the method we recommend to all businesses in the early stages.
Example with figures: A service business launched in January 2026, with steadily growing sales.
| Calendar quarter | Taxable Sales | Rolling Total (4 Quarters) | Verdict |
|---|---|---|---|
| Q1 2026 (Jan. through March) | $4,000 | $4,000 | Small supplier |
| Q2 2026 (April through June) | $8,500 | $12,500 | Small supplier |
| Q3 2026 (July-Sept.) | $9,500 | $22,000 | Small supplier |
| Q4 2026 (Oct. to Dec.) | $10,500 | $32,500 | Threshold Exceeded (No Single Quarter Above It) |
Verdict: Total sales exceed $30,000 in Q4 2026, though no single quarter crosses the threshold. The business therefore remains a small supplier until January 31, 2027, the month following the end of the fourth quarter. Its first sale in February 2027 must include GST and QST, and the registration application must be submitted within the following 29 days. If, on the other hand, it were to land a $31,000 contract in May, everything would change immediately: that sale would already be taxable, and registration would be due within 29 days.
To estimate the impact on your invoices once you’re registered, our GST/QST calculator calculates it both ways, based on the amount before or after taxes.
In Quebec, a taxable sale is subject to a 5% GST and a 9.975% QST, both calculated on the pre-tax price, for a total tax rate of 14.975%. Here are some billing guidelines:
| Amount Before Taxes | GST (5%) | QST (9.975%) | Total billed |
|---|---|---|---|
| $500.00 | $25.00 | $49.88 | $574.88 |
| $1,000.00 | $50.00 | $99.75 | $1,149.75 |
| $2,500.00 | $125.00 | $249.38 | $2,874.38 |
| $10,000.00 | $500.00 | $997.50 | $11,497.50 |
In return, registration entitles you to input tax credits (ITC, for the GST) and input tax refunds (ITR, for the QST): you recover the taxes paid on your business purchases and remit only the net amount to Revenu Québec. The filing frequency depends on your annual sales: annually for sales up to $1.5 million, quarterly for sales between $1.5 million and $6 million, and monthly for sales exceeding $6 million. Above all, remember that the taxes you collect belong to the tax authorities, not to you: set them aside as you go, ideally in a separate account. A accurate bookkeeping makes filing your first tax return much easier.
Staying a small supplier reduces paperwork, but voluntary registration is often the best choice right from the start:
The trade-off: Once registered, you must bill, report, and remit taxes according to the schedule, even if your revenue remains modest. For a client base of individuals, who do not recover taxes, remaining a small supplier can preserve a price advantage of nearly 15%. This is exactly the kind of decision an accountant can resolve in a single meeting; see also Signs It’s Time to Hire an Accountant.
In terms of budget, accounting services for a business cost a median of approximately $3,000 per year, with most engagements ranging from $500 to $6,000 depending on volume and industry. Based on actual fees from 1,248 engagements secured through Bankeo (2024-2026), out of more than 15,000 requests received; the Bankeo Fee Barometer provides a breakdown of these ranges by service. You can also browse the vetted accountants in the Bankeo network to compare profiles near you.
Bankeo matches you for free with vetted accountants from its network of over 1,500 partners. Your registration, tax rates, and filing schedule are handled correctly from the start, and we’re always here to support you. It’s a free service with no obligation, and your first match is often made within 48 hours.
Find my accountantA small supplier is a business whose total taxable sales (yours and those of your partners) do not exceed $30,000 over four consecutive calendar quarters or in any single quarter. As long as you maintain this status, you are not required to register for the GST and QST: you do not charge taxes, but you also do not claim ITCs or ITR on your purchases.
No. The test is a rolling one: at the end of each calendar quarter, the taxable sales from the previous four quarters are added together. Therefore, the threshold can be exceeded at any time during the year. The calculation is based on taxable sales before expenses, including zero-rated supplies but excluding sales of capital assets and exempt financial services.
You immediately lose your status as a small supplier. The sale that causes you to exceed the threshold is already taxable: you must collect GST and QST on it, then submit your registration application to Revenu Québec within 29 days. There is no grace period in this scenario, unlike when the threshold is exceeded on a cumulative basis over four quarters.
Not required, except for certain specified activities: taxi and for-hire passenger transportation, and, for the QST, the retail sale of tobacco, fuel, alcoholic beverages, new tires, or motor vehicles. Below the threshold, voluntary registration is often advantageous when starting a business, as it allows you to recover the GST and QST paid on your startup expenses through ITCs and ITRs.
Revenu Québec may register you retroactively to the date you ceased to be a small supplier. Any taxes you should have collected remain due even if you haven’t invoiced them: they are then deducted from your profit margin, along with possible interest and penalties. This is why it’s important to project when you’ll exceed the threshold using a rolling calculation rather than realizing it after the fact.
Accounting services for a business (bookkeeping, taxes, filings) cost a median of approximately $3,000 per year, with most engagements ranging from $500 to $6,000 depending on volume and industry. Based on actual fees from 1,248 engagements secured through Bankeo (2024-2026), out of more than 15,000 requests received. The Bankeo Fee Barometer breaks down these ranges by service.
General information provided for informational purposes only, based on known 2026 tax rules. It is not a substitute for the advice of a Chartered Professional Accountant (CPA): always consult a professional regarding your specific situation.
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