General Informatiion Concerning the QST and the GST/HST - Ryan

purchases. You may nonetheless choose to register. If you do so, you must register for both taxes for
a period of at least one year. You will then be required to collect the taxes on all your taxable sales
(excluding zero-rated sales) and remit them to Revenu Québec.
Types of supplies
There are three types of supplies: taxable, zero-rated and exempt. To determine whether you must
collect GST and QST, or whether you may claim an ITC and an ITR, you must know the type of supply
being made for each transaction you carry out.
The supply of a good or service (including zero-rated supplies) is said to be a taxable supply if it
is subject to GST or QST and is made in the course of commercial activities. GST at the rate of 5%
and QST at the rate of 7.5% apply to the supply, unless it is exempt or zero-rated. Registrants that
acquire taxable goods or services in the course of their commercial activities may be entitled to an
ITC or an ITR.
Supplies that are subject to 5% GST and 7.5% QST include the following:
y tools sold to a business specialized in the repair of small motors, as well as lawnmowers sold by
the business;
y moulds sold to a bakery, as well as chocolates sold by this bakery;
y computers sold to a law firm, as well as legal services provided by the firm;
y sales of new residential complexes;
y sales and rentals of commercial buildings;
y retail automobile sales and automobile rentals;
y sales of gasoline and automobile repair services;
y sales of soft drinks, candy and potato chips;
y sales of clothing and footwear;
y the rental of hotel accommodations for a night;
y the provision of barber and hairstylist services;
y sales of printed books that have an International Standard Book Number (ISBN), in the GST system
only.
You are not required to collect GST or QST on the zero-rated supplies you make, since these supplies
are taxable at the rate of 0% in both the GST and the QST systems. For the same reason, you are not
entitled to ITCs or ITRs if you acquire zero-rated supplies. However, you may be entitled to ITCs or
ITRs if you acquire taxable goods or services in order to make zero-rated supplies.
Zero-rated supplies include the following:
y sales of prescription drugs;
y sales of certain medical devices;
y sales of basic groceries;
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General information