In Canada, provincial and territorial governments set their own sales tax regulations. That means you could pay a variety of taxes to buy products and services in different regions. This can make things more complex and expensive, particularly in Quebec where sales taxes are high. So it’s important to add up the merchant’s total sales tax in Quebec before you check out online or at the cash register.
Here’s how sales tax works in Quebec.
Sales Tax In Quebec
Calculating the sales tax in Quebec is relatively easy. The provincial government currently applies a 9.975% QST (Quebec Sales Tax) to all applicable purchases, while the federal government applies a 5% GST (General Sales Tax). This leads to a total sales tax rate of 14.975% for items bought within Quebec.
These sales taxes in Quebec are also referred to as:
- Taxe De Vente Du Québec (TVQ)
- Taxe Sur Les Produits Et Services (TPS)
How To Calculate Sales Tax In Quebec?
You can use this formula to calculate sales tax in Quebec:
- Amount Before Sales Tax × (GST rate ÷ 100) = Total GST
- Amount Before Sales Tax × (QST rate ÷ 100) = Total QST
- Total GST + Total QST = Total Sales Tax
For example, here’s what you’ll pay in taxes to make a $1,000 purchase in Quebec:
- 5% GST = $50.00
- 9.975% QST = $99.75
- Total Sales Tax = $149.75 ($50.00 + $99.75)
- $1,000 + $149.75 = $1,149.75 total purchase price with taxes
Exemptions Of Sales Tax In Quebec
These tax exemptions are unique to Quebec:
Quebec Rebates And Exemptions To The Qst
Most of the tax exemptions and rebates that accompany the federal GST, apply to the QST as well. They include:
- Infant care products (diapers, baby bottles, breastfeeding equipment, etc)
- Insurance premiums
- Books (including audiobooks) that contain an International Standards Booking Number (ISBN)
Special Taxes On Insurance Premiums
While insurance premiums are not exempt from the QST or GST in Quebec, a special tax of 9% is charged on premiums for certain types of entity or property insurance. This tax applies to home and car insurance, but not personal insurance (health, life, disability, etc.).
Quebec First Nations And PST
Quebec follows the federal guidelines concerning the sales tax exemptions of First Nations residents. All goods and services sold to First Nations will be charged the QST and GST, but any services provided to individual residents on reservation land are exempt from sales taxes.
Quebec Sales Taxes On Used Motor Vehicle Sales
Quebec sales taxes are also charged differently on the purchase of used motor vehicles. Although QST must be paid directly to Société de l’assurance automobile du Québec (SAAQ) after you register, your sales taxes can vary according to the vehicle seller:
- Dealership: 5% GST and 9.975% QST on the total sales price
- Private Sale: QST on the greater sales price or the car’s estimated value
If you Make An Online Purchase In Another Province, How Does It Affect Sales Tax?
Remember, sales taxes vary by location. This can make things a bit more complicated but mainly for the merchant, who is responsible for applying the appropriate taxes:
- If you are in the same province or territory as the merchant, you’ll pay that region’s specific sales tax rates.
- If you buy something out-of-province, you pay the sales tax rate of the province or territory where the product will be shipped or the service will be provided.
Here’s what can happen if you make a purchase online from a store outside Quebec:
- If you’re a QC resident or tourist and you buy an oven anywhere in Quebec, you’ll automatically pay the province’s QST and GST rate.
- If you buy the same oven online from a store in Alberta (which has no provincial sales tax), you must still pay the QST and PST to have it shipped to Quebec.
Sales Taxes And Businesses In Quebec
To own or operate a business in Quebec, you must abide by any provincial tax laws and learn how to:
- Register For Sales Taxes – Most Quebec-based businesses are legally required to register for QST and GST through Revenu Québec.
- Tax Out-Of-Province Sales – If a client buys something at your store location, you must apply the appropriate QST and GST. If they buy it outside Quebec, you have to adjust for the sales tax rates of the province/territory you’re shipping it to.
FIND OUT HOW TO GET A:
Do You Qualify For The GST/HST Tax Credit In Quebec?
The GST/HST Tax Credit is a quarterly payment benefit for Canadians earning low to moderate incomes. It’s meant to help offset the taxes consumer pay on goods and services.
Single individuals eligible for the tax credit in Quebec can get up to $467. Those in a common law relationship or those who are married can get up to $612. If you have children, you may get an extra $161 per child under the age of 19.
Note, these payments may be combined and paid out with other benefits.
GST/HST Tax Credit Payment Dates In Quebec
The GST/HST Tax Credit is sent out quarterly on these dates. Here’s what your payments will look like if you earned the starting credit of $299, with the additional $157:
| Payment Dates |
| January 5th |
| April 5th |
| July 5th |
| October 5th |
Other Quebec Tax Credits
While taxpayers pay a lot in sales tax in Quebec, they have a number of provincial tax credits and rebates they can claim. These tax benefits can help offset some of the sales tax and income taxes paid in Quebec.
Solidarity Tax Credit
If your family has a low or moderate income, this refundable tax credit can be applied to housing, QST and purchases made by residents of northern villages. If Revenu Québec considers you eligible, you may qualify for some or all of those components.
Work Premium Tax Credit
This credit is meant to motivate Quebec taxpayers into working or continuing to work. A supplemental work premium may be available too, depending on your personal and family situation. Once again, Revenu Québec will determine your eligibility.
Tax Shield
When your income rises, it can affect your work credits, like the work premium credit or tax credit for childcare expenses. The Tax Shield is a refundable tax credit that helps offset that effect.
Taxi Drivers or Tax Owners
You may be able to claim this credit if you’re a taxi driver or owner with a permit. You must also meet different criteria related to your residency and driver’s history, so check with Revenu Québec before you apply.
Quebec Family Tax Credits
- Caregivers Tax Credit – This refundable tax credit is given to qualifying informal caregivers. While there is a federal tax credit for this purpose, Quebec taxpayers can claim it provincially too.
- Family Allowance – This tax credit is funded by the Quebec government and offers a regular allowance to support families with one or more child dependents living at home. Children must be under 18 to qualify.
- Children’s Activities Tax Credit – This credit is for families who wish to enroll their children in recreational, physical or art-related activities. Even though it was cancelled by the federal government several years ago, the Quebec government still offers it to eligible residents on a provincial level.
Making A Purchase In Quebec?
Then remember to account for any sales taxes the merchant could charge, since they can add significantly to the final price. While Quebec sales taxes aren’t too difficult to understand, they must still be considered, especially if you’d like to save money. Check out Loans Canada for more information about sales taxes in every part of the country.
