Upcoming changes for QST and PST
New QST registration rules will take place on September 1, 2019 for Canadian businesses located outside of Quebec
Quebec announced in its 2018-2019 budget the introduction of new QST registration rules for suppliers outside Quebec. As a result, where certain conditions are met, these suppliers (including certain operators of digital platform that act as intermediaries between suppliers and consumers) are or will be required to register using the new simplified registration service reserved for these suppliers.
These new QST rules already came into effect on January 1, 2019 for suppliers located outside of Canada. The mandatory registration for Canadian businesses that are located outside of Quebec will take place on September 1, 2019.
In short, Canadian businesses located outside of Quebec that are already registered for GST/HST will be required to register for QST if they make more than $30,000 per year of sales (other than via certain digital platforms) of goods, services or intangibles (e.g. digital software or games) to consumers who reside in Quebec and are not registered for QST purposes.
Canadian businesses that are not currently registered for QST should review their operations and determine whether they will be affected by these new QST rules. If so, they will have to register using the online tool on the Revenue Quebec’s website.
These businesses may also decide to register for QST under the regular rules which would entitle them to the full benefits granted to regular QST registrants. It may be worth analyzing which regime would better serve your business.
Decrease of PST rate in Manitoba
Manitoba has announced in its last budget that the rate of its provincial sale tax (PST) will be decreased from 8% to 7% as of July 1, 2019.