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Canada Quebec QST VAT 2013 changes

  • Jan 19, 2013 | Richard Asquith

Canada Quebec QST VAT 2013 changes

Quebec, one of Canada's ten Provinces, has implemented a number of changes to its Quebec Sales Tax (QST) indirect tax regime.  It operates an independent tax regime from the main Canadian GST system.

Canada GST changes across the Provinces

The Canadian consumption tax system is in a process of transition, with many Provinces moving from the combined Federal tax, Goods and Sales Tax (GST), and Provincial tax, PST, to a single GST.  However, some Provinces still have significant differences.  For example, Canada British Columbia is actually reversing it move to the single GST, and will return to the two-tax system on 1 April 2013.  Check all Canadian GST and Provincial tax rates here.

Canada Quebec simplifies QST VAT regime

While Quebec has no immediate plans to move to the single, combined tax, it has introduced a number of measures to help align its QST regime with GST.  These include:

Switching financial services from nil-QST rate to the exempt rate.  This means financial companies will no longer be able to recover any QST they incur on their own costs.

Deregister non-resident businesses which have a Quebec QST registration on a voluntary basis.

Simplify the QST calculation by removing the Federal GST tax from the calculation, and raise the QST rate to 9.975% to compensate

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara