Quebec has its own provincial tax — the QST (9.975%) — administered by Revenu Québec, not the CRA. Both GST and QST are recoverable, but you file with two separate agencies.
How your business purchases are taxed at the register.
Quebec is the only province that administers its own consumption tax entirely independently from the federal system. The QST (Québec Sales Tax) is set at 9.975% and is managed by Revenu Québec — a separate agency from the CRA. You must register for and file QST separately from your GST return.
The good news: both the 5% GST and 9.975% QST are fully recoverable for business purchases. You claim GST back through Input Tax Credits (ITCs) on your CRA GST return, and QST back through Input Tax Refunds (ITRs) on your Revenu Québec QST return. This means your effective tax recovery is nearly 15% on every business purchase — from professional fees to advertising.
Quebec's combined rate of 14.975% is among the highest in Canada, but because both components are recoverable, registered self-employed workers can claim it all back. The complexity comes from maintaining two registrations, two sets of returns, and two agencies — unlike the single-filing simplicity of Ontario. ScanForTax tracks both GST and QST components on every receipt to simplify your dual filing.
See exactly how taxes break down on common business purchases in Quebec.
Quebec
You pay $574.88 total. Both the $25 GST (via ITC to CRA) and $49.88 QST (via ITR to Revenu Québec) are recoverable. Your true cost is $500.
Quebec
You recover $269.55 in total tax — $90 as GST ITC and $179.55 as QST ITR. The net $1,800 is eligible for CCA Class 8 at 20%.
Quebec
Even small expenses in Quebec carry nearly 15% in recoverable tax. The $6.74 total is split between your GST and QST returns.
Your Input Tax Credit (ITC) filing roadmap.
Keep receipts with GST/HST registration numbers
Match each expense to a T2125 line item
Claim ITCs on your GST/HST return
Quebec requires dual filing: claim GST Input Tax Credits (ITCs) on your CRA GST return, and QST Input Tax Refunds (ITRs) on your Revenu Québec QST return. Both the 5% GST and 9.975% QST are fully recoverable on business purchases including rent, telephone and utilities, and insurance. You must register separately for QST with Revenu Québec (in addition to GST registration with CRA). Filing periods for GST and QST may differ — many Quebec self-employed workers align them for simplicity. ScanForTax separates GST and QST on every receipt and generates totals for each return.
2 advantages, 2 things to watch
Quebec is the only province where you file provincial sales tax with a separate agency. You need a QST registration number from Revenu Québec in addition to your GST number from the CRA. Two registrations, two returns, two agencies.
Revenu Québec QST RegistrationUnlike BC or Saskatchewan PST, Quebec's QST is fully recoverable through Input Tax Refunds (ITRs). This means your effective tax cost on business purchases is zero — all 14.975% comes back.
Since January 2013, QST is calculated on the price before GST (not on the GST-inclusive amount). This simplified the math: on a $100 item, GST is $5 and QST is $9.975 — no tax-on-tax.
Revenu Québec Bulletin 2012-8Quebec requires businesses to withhold source deductions from payments to subcontractors unless the subcontractor provides a valid Revenu Québec registration certificate. This is unique to Quebec and catches many out-of-province contractors off guard.
See profession-specific tax guides for self-employed workers in Quebec.
Official government and support links for Quebec self-employed workers.
Official Revenu Québec guide to QST registration and filing.
Federal guide to GST registration and Input Tax Credits.
Quebec-specific tax obligations for self-employed individuals.
Common T2125 deductions for Quebec self-employed workers.
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