The 2018 Québec Budget and Digital Economy – An Update Regarding QST Registration

As discussed in prior articles, certain amendments to the Act Respecting the Québec Sales Tax announced in the 2018 Québec Budget and which related to the digital economy and electronic commerce received Royal assent on June 12.1 These measures expand the Québec Sales Tax (“QST”) base to digital business in Québec.

Further to these amendments, certain non-resident suppliers will have the obligation to register with Revenu Québec, under a new specified registration system, for the purpose of collecting and remitting the QST applicable to taxable supplies made in Québec to specified Québec consumers. The expression "specified Québec consumers" refers to a person who is not registered for QST purposes and whose usual place of residence is located in Québec.

Prior to registering, non-resident suppliers selling services or intangible property and Canadian corporations supplying tangible goods in Québec should carefully assess whether they have the obligation to register or not under the new QST rules.

The new specified registration system is now online and accessible here. Non-resident suppliers should register for QST purposes using this service before either January 1st, 2019, for non-resident suppliers located outside Canada, or September 1st, 2019, for non-resident suppliers located in Canada. New registrants need to ensure they comply with the new QST rules and related compliance obligations and the legislation in general on an ongoing basis.

In related news, the Liberal Party of Québec announced, in the context of the current provincial election campaign, that it would broaden the scope of the new QST rules by also taxing tangible goods imported into Québec from abroad should it be re-elected October 1.

For greater details on the registration of non-resident suppliers for QST purposes, please contact Nicolas Désy at [email protected].

  • 1 For a detailed explanation regarding the measures provided for in the 2018 budget, see the following article by N, DÉSY and L-A, Ipperciel: 2018 Québec Budget: Sales Taxes & Digital Economy, https://www.mccarthy.ca/en/insights/articles/2018-quebec-budget-sales-taxes-digital-economy.

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