What is QST (Québec sales tax)?

The Québec Sales Tax (QST, or TVQ in French) is a provincial value-added tax charged at 9.975% on most goods and services supplied in Québec. It is applied on the selling price before GST, and the two taxes together come to roughly 14.975%. Revenu Québec administers both the QST and, for most Québec businesses, the GST as well, so one combined return usually covers both.

Because the QST is a value-added tax, it works much like GST/HST and quite unlike the PST in other provinces. Registrants collect QST on taxable sales and claim input tax refunds (ITRs) for QST paid on business purchases, which is the Québec equivalent of an input tax credit. The registration test mirrors the GST small supplier threshold of $30,000, and out-of-province businesses selling digital services or goods into Québec may have to register under specified rules.

Most items that are zero-rated or exempt for GST are treated the same way for QST, but there are differences, and Québec has its own rules on some restrictions to refunds for large businesses. Invoices to Québec customers should show both tax amounts and both registration numbers. Accounting software should track QST in separate accounts so the combined return can be prepared accurately.