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

General information
Administering the GST/HST in Québec
Under an agreement reached between the federal and Québec governments, Revenu Québec
administers the GST/HST in Québec. Accordingly, Revenu Québec receives and processes applications
for registration under the GST/HST system from all persons carrying on commercial activities in
Québec. Once registered, these persons continue to deal with Revenu Québec for all GST- and
HST-related matters (including returns, remittances, rebate applications, audits, investigations,
interpretation of laws and regulations, notices of objection, tax collection, and unfiled returns).
The federal-provincial agreement does not affect the federal government’s responsibility regarding
the GST/HST. The Canada Revenue Agency (CRA) ensures uniform application of the GST/HST across
Canada. In Québec, Revenu Québec is fully responsible for administering the GST/HST in accordance
with the rules established by the federal government.
Whether registered for the taxes or not, you can find out more about the GST/HST and the QST by
contacting Revenu Québec’s client services (refer to the chapter entitled “Services offered by Revenu
Québec” on page 97).
Québec businesses that are registered for the GST/HST must collect the HST on sales they make in
participating provinces (New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario and
British Columbia). However, the term “HST” is not systematically used throughout this brochure.
The term “GST” is used to mean “GST/HST,” unless otherwise specified.
The GST and QST systems
Basic rules
The supply of most goods and services is subject to GST and QST. Most transactions conducted in
Canada are GST-taxable at the rate of 5% 1 of the sale price. Transactions conducted in Québec
are subject not only to GST, but also to 7.5% QST calculated on the sale price (including the GST).
Certain goods and services are zero-rated, which means that they are subject to GST and QST at the
rate of 0% (see the next section). A small number of goods and services are tax-exempt; they are
not subject to GST and QST (see the next section).
1. This rate was 6% from July 1, 2006, to December 31, 2007. It was previously 7%.
9 General information