Guide
QST in Quebec: the rate, input tax refunds, and what your records have to show
How QST works alongside GST, why the rate is 9.975%, how input tax refunds differ from input tax credits, and what a Quebec expense record must carry.
Last reviewed 5 min readRead as Markdown
Quebec charges 9.975% QST on top of the 5% federal GST, for a combined 14.975%. Both are calculated on the pre-tax amount — QST has not been compounded on GST since 2013. A registered business recovers GST as an input tax credit from the CRA and QST as an input tax refund from Revenu Québec, which means a Quebec business files into two systems and its records have to keep the two taxes apart.
- QST rate
- 9.975%
- Combined with GST
- 14.975%
- Calculated on
- The pre-tax amount, not the GST-inclusive amount
- Administered by
- Revenu Québec
- Recovery mechanism
- Input tax refund (ITR)
- Registration threshold
- CA$30,000, broadly matching GST/HST
How does QST work alongside GST?
Quebec is the only province running its own value-added tax in parallel with the federal one rather than harmonising with it or charging a separate retail tax. Two taxes, two rates, two administrations, one receipt.
| Line | Amount | Calculated on |
|---|---|---|
| Subtotal | CA$100.00 | — |
| GST at 5% | CA$5.00 | The CA$100 subtotal |
| QST at 9.975% | CA$9.98 | The CA$100 subtotal, not the CA$105 |
| Total | CA$114.98 | — |
Why is the rate 9.975% rather than a round number?
It is the arithmetic of removing the compounding without changing what anyone pays. Under the old method, 9.5% on a GST-inclusive base of CA$105 came to CA$9.98. Charging 9.975% on the CA$100 pre-tax base produces the same CA$9.98. The rate looks strange because it was chosen to keep the total identical while simplifying the base.
Practically, the three decimal places mean rounding matters. On small transactions a system that truncates to two decimals before summing will drift against the receipt by a cent here and there — which is exactly the kind of difference that turns a reconciliation into an afternoon.
How is an input tax refund different from an input tax credit?
They are the same idea running in two systems. The GST you pay on business purchases comes back as an input tax credit claimed from the CRA. The QST you pay comes back as an input tax refund claimed from Revenu Québec. A Quebec business claims both, on returns that Revenu Québec administers together for most registrants.
- Both require that the purchase be for commercial activity, and both restrict the personal share of a mixed-use purchase.
- Both apply the roughly 50% restriction to meals and entertainment.
- Documentary requirements track the federal tiers closely, including the point at which the supplier's registration number becomes mandatory — and in Quebec you want the QST registration number as well as the GST one.
- Large businesses have historically faced restrictions on ITRs for certain categories that do not apply federally. If your revenues are substantial, confirm the current position rather than assuming symmetry.
The record-keeping consequence is direct: a Quebec receipt whose tax is stored as one merged figure cannot support either claim cleanly, because the two amounts go to two different authorities.
What does a Quebec expense record need to carry?
- The GST amount and the QST amount as separate fields. Not a combined 14.975% figure.
- The supplier's GST and QST registration numbers on purchases where the tiers require them.
- The province, so a Quebec purchase is not reconciled against an Ontario rate.
- The original document, kept for six years, as with any Canadian business record.
- Bilingual receipts read correctly. Many Quebec receipts label the taxes TPS and TVQ rather than GST and QST, and a system that only recognises English labels will miss them.
SimpleLoonie reads the tax lines as printed, including French labels, records GST and QST as separate amounts against the transaction, and keeps the province with the record. The invoice generator works the same way from the other direction: you can add a QST line at 9.975% alongside GST and rename every label on the invoice into French, so what you send a Quebec client reads as a Quebec invoice.
Frequently asked questions
What is the QST rate in Quebec?
9.975%, charged on the pre-tax amount alongside the 5% federal GST, for a combined 14.975%. A CA$100 purchase carries CA$5.00 GST and CA$9.98 QST.
Is QST charged on top of GST?
Not since 2013. Both taxes are now calculated on the same pre-tax base. Before that, QST was applied at 9.5% to the GST-inclusive amount; the change to 9.975% on the pre-tax amount produces the same total without compounding.
How do I recover the QST I pay on business purchases?
As an input tax refund claimed from Revenu Québec, which is the QST equivalent of a federal input tax credit. Registered businesses claim GST from the CRA and QST from Revenu Québec, so both amounts need to be recorded separately on every receipt.
Do I need to register for QST separately from GST/HST?
Yes, QST registration is with Revenu Québec, and it is separate from your federal GST/HST registration even though the threshold is broadly the same CA$30,000 in taxable revenues. Revenu Québec administers both returns for most Quebec registrants.
Does a Quebec receipt say GST and QST or TPS and TVQ?
Often TPS and TVQ, the French abbreviations, and frequently both languages on the same receipt. Any system reading Quebec receipts has to recognise the French labels, or it will record the taxes as missing.
Can I invoice a Quebec client in French with QST?
Yes. A Quebec invoice should show your GST and QST registration numbers and the two taxes as separate lines. The SimpleLoonie invoice generator lets you add a QST line at 9.975% next to GST and rename every label on the invoice, so the whole document can read in French.
Sources
This page is general information about Canadian tax administration, not tax advice, and it was last reviewed on . Rules and rates change. For a decision that matters to your business, check the source above or talk to an accountant.