Changes to the Quebec sales tax

Dear Sir or Madam:

In March 2012, the governments of Quebec and Canada entered into an agreement to change the Quebec sales tax (QST). The QST will remain a provincial tax separate from the goods and services tax/harmonized sales tax (GST/HST) and will be calculated on the sale price for goods and services, without the GST.

Starting on January 1, 2013, the Canada Revenue Agency (CRA) will administer the QST, on behalf of Revenu Québec, for selected listed financial institutions (SLFIs) that do business in Quebec and financial institutions that would be SLFIs if Quebec were a participating province.

• Reporting of tax amounts collected
  
  Starting on January 1, 2013, you will be required to report to the CRA the QST and GST/HST amounts you collect and use the new reporting form designed for that purpose. More information on this form will be available soon. You will also need to send the QST and GST/HST amounts you collected directly to the CRA.
  
  
• From January to October 2013, your GST/HST and QST return will need to be sent to the CRA in paper format only. During that time, the CRA will change its data systems to automate the processing of the joint GST/HST and QST return. However, you will be able to use the CRA's electronic My Business Account service to view the returns that you have to file, check your bank information, or make enquiries.
  
  
• Single reporting period for the GST/HST and the QST
  
  Starting on January 1, 2013, your QST reporting period must correspond with your GST/HST reporting period. The attached fact sheet gives more information on the changes to the QST system, the tax treatment of financial services, and the administration of QST and GST/HST accounts starting on January 1, 2013.

For information about the changes to the QST system and the QST rate in effect on January 1, 2013, visit the Revenu Québec Web site at www.revenuquebec.ca/entente-TVQ or contact Revenu Québec client services at 1-800-567-4692.

For information about the GST/HST, contact the CRA as follows:

• For GST/HST account-related enquiries or to register for a CRA business number, call 1-800-959-5525;
• For technical GST/HST enquiries, call 1-855-666-5166

Starting on January 1, 2013, the CRA will also respond to questions on the administration of the QST as it applies to SLFIs and financial institutions that would be SLFIs if Quebec were a participating province. Visit the Revenu Québec and CRA Web sites regularly for updates to the information provided in this letter.

Sincerely,

Catherine Bennett
Assistant Commissioner
Strategy and Integration Branch
Canada Revenue Agency

Carole Imbeault
Vice-President and Director General
Enterprises Branch
Revenu Québec

Date modified:

2013-01-10