GST, HST, and QST Filing Services in Montreal

Fractional Accounting

GST, HST, and QST Filing Services in Montreal

Once your business brings in more than $30,000, you need to deal with GST, HST, and QST tax filings in Montreal, QC. For a lot of contractors and tradespeople, that is where things start to get confusing, especially when it comes to registration, return deadlines, and knowing what you can claim back. Fractional Accounting helps small business owners get set up properly, file on time, and stay on top of their sales tax without the stress of figuring it out on their own.

Based in Montreal, Fractional Accounting works with clients in English and French. Call (438) 802-4945 or fill out our contact form to get your tax accounts set up and your filings up to date.

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Who Has to Register for GST and QST in Quebec

In Quebec, most businesses must register for GST with the federal government (CRA) and QST with the Quebec government (Revenu Québec) after they exceed $30,000 in sales over a 12-month period.

The $30,000 Limit

The $30,000 limit is based on your total sales in one three-month period, or across four three-month periods in a row. This rule applies to sole proprietors, incorporated businesses, and self-employed tradespeople.

Until your sales pass $30,000, the government treats your business as a small supplier. That means registration is optional. Once you pass $30,000 in sales, registration becomes mandatory. Once your business goes over the limit, you are required to start charging taxes. If you register late, you may still owe taxes from the date you passed the limit. You may also have to pay fines and interest for the time you should have been registered but were not.

Quebec works differently from every other province. Revenu Quebec handles both GST and QST for the federal government. This means you file everything through a single government office and a single online system. You will still have two separate account numbers: one for GST and one for QST.

Registering Before You Hit $30,000

Businesses below the $30,000 limit can choose to register early. This is a smart move for tradespeople who buy tools, equipment, vehicles, or materials before their business starts making much money.

Every dollar of GST and QST you pay on business purchases can be claimed back from the government. For GST, this is called an input tax credit (ITC). Think of it as the government refunding the tax you paid when you bought something for your business. For QST, the same type of refund is called an input tax refund (ITR).

To claim these refunds, you must have been registered at the time you made the purchase. For example, if you spent $20,000 on tools before landing your first contract, you can claim that sales tax back, but only if you were registered when you bought the equipment. Registering early makes those refunds available from day one. For tradespeople with high startup costs, waiting until you reach $30,000 means you miss out on getting that money back.

GST, HST, and QST Registration and Filing Services in Montreal

Fractional Accounting handles GST, HST, and QST tax filing for contractors, tradespeople, and small business owners in Montreal. Here are the services we offer.

Registration

We handle GST/HST registration with the CRA, including setting up your Business Number and tax account.
Our team completes your QST registration with Revenu Québec.
For businesses under the $30,000 limit, early registration can be set up so you can start getting purchase taxes back right away.
Late registrations and back-filing are handled if you miss the deadline.

Return Preparation and Filing

Your GST/HST return is prepared and filed correctly.
QST returns are completed and submitted to Revenu Québec.
Filing is handled monthly, quarterly, or yearly, based on your assigned schedule.
We calculate the total tax owed based on your numbers.
We schedule payments so they are made on time.

Claim Back GST, HST, and QST on Business Purchases

Our team reviews your purchases, equipment, materials, and vehicle expenses to find all eligible refunds.
We identify missed refunds from earlier periods and claim them when possible.
Taxes paid before registration can be recovered on qualifying purchases.

Quick Method Eligibility Check

We compare two different ways of calculating your tax payments to find the one that costs you less.
We submit the necessary government forms to switch you to a simpler calculation method, helping you save money.

Bookkeeping and Clean-Up

Our team matches your sales and purchase records against the taxes you collected and paid at the end of each period.
We go back and fix past periods where records were incomplete or returns were never filed.

Cross-Province Filing

We set up HST (a combined federal and provincial tax used in Ontario and several other provinces) for Montreal businesses that send invoices to clients outside Quebec.
When you work across provincial lines, we figure out which province's tax rules apply.

Government Communication

We respond to letters and manage your file with Revenu Quebec and CRA.
Our team sets up and manages your access to the government's online business portal (Mon dossier pour les entreprises).

Audit Support

We prepare files and documents if CRA or Revenu Quebec decides to review your tax returns.

Fractional Accounting

How We Handle GST and QST Filing for Your Business

GST and QST filing with Fractional Accounting follows a straightforward six-step process. You provide your records, and we handle the filings.

1. Contact us by phone or online form

Call (438) 802-4945 or fill out our contact form. During our first conversation, we confirm what you need help with: registration, ongoing filing, or fixing missed periods.

2. Confirm your registration status

We check your GST account with the CRA, and your QST account with Revenu Québec, to ensure both are active. If either is missing, we complete the registration before getting started with any return work.

3. Set filing deadlines

The government assigns your filing schedule based on your yearly sales. All deadlines are tracked from day one, so nothing gets missed.

Monthly: if your sales are above $6 million per year
Quarterly (every three months): if your sales are between $1.5 million and $6 million
Yearly: if your sales are below $1.5 million

4. Send us your records

Each period, send over your total sales, purchase receipts, and any expenses for which you paid tax. We match everything, calculate your tax owing, and determine all refunds before preparing the return.

5. File returns on time

We file your GST return with the CRA and your QST return with Revenu Québec through the government's online portal. You get confirmation when each one is processed, so you can stay up to date.

6. Handle government follow-up

If CRA or Revenu Québec have questions, we deal with them directly, so you do not have to.

The Quick Method of Accounting for Montreal Contractors

The Quick Method of Accounting is an option available to qualifying small businesses that simplifies tax payments each period. Under the standard method, a business tracks the tax it collected on sales, subtracts the tax it paid on purchases, and pays the government the difference. The Quick Method removes the need to track every individual purchase. Instead, the business pays a fixed percentage of its total sales, tax included. The government sets the percentage based on your business type and whether you sell goods, provide services, or both.

How the Quick Method Works in Practice

For example, if a Montreal electrician is billing $100,000 in sales per year and collects roughly $5,000 in GST and $9,975 in QST from clients.

Under the standard method, the electrician subtracts the tax paid on business purchases from the tax collected on sales and pays the government the difference.

Under the Quick Method, the same electrician pays a fixed percentage of total revenue instead of going through each purchase. For service-based contractors who spend little on materials, this flat payment is often less than what they would owe under the standard method. With this method, the difference stays with the business.

When the Quick Method Makes Sense for Tradespeople

The Quick Method tends to work better for contractors who mainly bill for labour. Electricians, plumbers, HVAC technicians, and painters with low material costs relative to their billing typically come out ahead.

It is less likely to help tradespeople who spend heavily on materials, equipment, or subcontractors. These purchases often lead to big tax refunds when using the standard method, sometimes even more than what the Quick Method saves.

The only way to know which method costs less is to run the numbers against your actual sales and expenses. At Fractional Accounting, we compare both methods before making any recommendations for your business.

How to Switch to the Quick Method

Switching to the Quick Method requires filing specific forms with both the CRA (for GST) and Revenu Quebec (for QST). The switch takes effect at the start of a filing period and generally stays in place until you decide to switch back. As part of our assessment, we at Fractional Accounting handle both filings.

Late Filing and Retroactive Registration in Quebec

Missing a GST or QST filing deadline in Quebec triggers fines from both the federal and provincial governments. The longer the situation goes unfixed, the more it costs.

What Happens When You Miss a Filing Deadline

If you miss a filing deadline with the CRA, they charge a late-filing penalty of 1% of the tax you owe on the return, plus an additional 0.25% of that amount for each full month the return remains unfiled, up to 12 months. Interest accumulates on top of the penalty starting from the day the payment is due.

Revenu Quebec applies the same type of penalty on the QST side. Both apply separately. One missed quarterly return can produce two sets of fines, one from each government.

The fine is based on the amount of tax you still owe. If your purchase tax refunds bring your balance down to zero, the fine also goes to zero. This is one reason it is very important to claim every refund you are entitled to.

What happens if you never register

Failing to register after passing the $30,000 limit is a tax compliance failure with real financial consequences. Both CRA and Revenu Quebec can go back and charge you for past periods.

A retroactive assessment means both governments calculate the GST and QST you should have collected and paid from the date your registration became required. That amount becomes what you owe. Fines and interest are added for each period you were unregistered.

The government can go back several years. This means that the earlier the situation is corrected, the less you will owe overall.

How to Correct the Situation

Voluntary disclosure is an option for businesses that come forward before an audit starts. This means telling the government about the problem yourself before they find out on their own. CRA's Voluntary Disclosures Program and Revenu Quebec's equivalent process can reduce or cancel fines on past amounts, though interest usually still applies.

At Fractional Accounting, we handle retroactive registration, back-filing of missed returns, and the paperwork needed for voluntary disclosure. If you have received a letter from Revenu Québec or the CRA, or if you know you should have registered but did not, call (438) 802-4945 before more fines and interest accumulate.

Frequently Asked Questions About GST, HST, and QST Filing in Montreal

Do I need to charge both GST and QST in Quebec?

Yes. In Quebec, most registered businesses must collect GST and QST on their taxable sales. GST is 5%, and Quebec sales tax (QST) is 9.975%. Revenu Québec manages both federal and provincial taxes in Quebec. You only need to register once, and you will receive both accounts at the same time.

What is the $30,000 threshold for GST and QST registration?

The $30,000 threshold is when GST, HST, and QST registration becomes required. If your total sales go over $30,000 in a single three-month period, or over four reporting periods in a row, you must register with the Canada Revenue Agency (CRA) and Revenu Québec. If your sales stay below that amount, registration is optional. This is called small supplier status.

How do I register for GST and QST in Quebec?

You must register for GST with the Canada Revenue Agency (CRA) to get your account and Business Number. For QST, you need to register with Revenu Québec to get your QST account. Both can be done online. With Fractional Accounting, we handle the full process, including setting up your account, completing the form, and giving you access to your online portal.

How often do I need to file GST and QST in Montreal?

Your filing period is based on your total sales. Most small business owners file:

Yearly
Every three months
Or monthly

For monthly and quarterly filers, the due date is one month after the end of each reporting period. Yearly filers have three months after the end of their fiscal year to file returns and pay.

What happens if I miss a GST or QST filing deadline?

If you miss a GST HST return or QST return, both the CRA and Revenu Québec apply a penalty and charge interest from the original due date. The longer you wait, the more you pay. The best move is to file as soon as possible to stop the penalty and interest from growing.

What is the difference between GST, HST, and QST?

In Canada, there are different types of sales tax:

GST (Goods and Services Tax) is the federal tax at 5%
HST (Harmonized Sales Tax) combines federal and provincial sales tax in some provinces
QST (Quebec Sales Tax) is charged separately in Quebec

If your business is located in Montreal but you invoice clients in other provinces, you may also need to collect HST depending on the location of your sales.

Can I claim back the purchase taxes on tools and materials?

Yes. You can claim back tax paid on goods and services, such as tools, materials, equipment, and vehicles.

For GST, this is called input tax credits
For QST, this is an input tax refund

These refunds reduce your net tax, which is the amount you need to pay. There are also refund opportunities for some past purchases, depending on when your business was registered.

What is the Quick Method of Accounting, and should I use it?

The Quick Method is a simpler way to calculate your GST, HST, and QST. Instead of tracking every expense, you apply a fixed remittance rate to your total sales. This method works well for many service-based businesses with low expenses. It can reduce paperwork and, in some cases, lower your costs. We compare the Quick Method and the regular method to see which one saves you more.

Start Your GST and QST Filing in Montreal

Fractional Accounting provides GST filing services, GST HST return preparation, and QST return filing for contractors, tradespeople, and small businesses in Montreal.

We handle:

GST, HST, and QST registration
Ongoing filing each reporting period
Catch-up work for missed returns
Finding all available refunds

Our goal is simple: make sure you file correctly, pay the right amount, and claim every dollar you are entitled to. Services are available in English and French.

Call (438) 802-4945 or fill out our contact form to set up and manage your GST, HST, and QST accounts today.

Testimonials

Our Customers Said

“So Helpful”
Working with Melissa as my fractional CFO has been a game-changer for my startup. Her expertise and guidance have been invaluable, and she has helped me make sound financial decisions that have accelerated our growth.
Martha Nazario
“Makes it make sense”
Fractional Accounting is a lifesaver for small businesses like mine. They handle all the bookkeeping and tax headaches, allowing me to focus on running my business. Their transparent communication and competitive rates make them the perfect choice.
Alex Martinez
“Outstanding Service”
Before Fractional Accounting, I felt constantly stressed about my finances. They’ve helped me gain control and clarity. Their proactive approach and financial planning have given me peace of mind and allowed me to confidently scale my business.
Antoine Crawford

GST, HST, and QST Filing Services in Montreal

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