HST & QST

by Taralee
(Ottawa, Ontario )

Can you help with this question on Quebec sales tax?

Hi There,

Can we claim input tax credit on QST (TPS & TVQ) if business is in Ontario? If yes, then how much ?

I found the rate of TVS=5% and TPQ = 8.92%

Hi Taralee,

I have no idea. I know you get to claim your federal portion of 5% GST ITC but not sure about the Quebec portion.

Hopefully some of site visitors will know the answer and respond.

Of course, you can always phone CRA.

Sorry I can't be more help but way out here in BC, I don't deal with Quebec sales tax.

Comments for HST & QST

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Combine HST
by: Anonymous

I just called CRA. The 5% GST is available to combine with HST as ITC. The QST is not able to combine with HST.

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Thanks. FYI, QST is harmonizing with GST on January 1, 2103 so I would think the combined ITCs would be available beginning at that time.

Just to clarify, GST is a part of HST where 5% GST federal portion + 7%* provincial portion = HST

*This is BC's portion. See the rate table for the other provinces.

Services in Quebec
by: Anonymous

Hi.

If we sell services to Quebec from Ontario what taxes and how much should we be billed? Only 5% and the QST should be paid by the service provider?

Thanks

Services in Quebec
by: Lake

If you are providing services from your business in Ontario to a Quebec company, you should be billing them; not vice versa.

You charge your sales tax based on the location of your customer. See Deloitte's place of supply flow chart to help walk you through the process.

You'll need to check with the Province of Quebec on whether you need to register to collect QST or if the customer has to self assess QST. I think but am not sure that it may be based on the volume of business you do in Quebec.

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