Revenu Québec Infos
Payment of the GST and QST by Métis, Inuit and Non-Status Indians
Under certain circumstances, Indians are exempt from paying consumption taxes under the GST and QST systems. However, Métis, Inuit, Non-Status Indians and Indians from the United States are not considered to be Indians for the purposes of this exemption. They must therefore pay GST and QST on taxable goods and services that they purchase (excluding zero-rated goods and services).
In the same way, the exemption from paying consumption taxes that applies to Indian bands or band-empowered entities does not apply to entities that govern or represent Métis, Inuit or Non-Status Indians.
The term "Indian" designates a person registered as such in accordance with the Indian Act. An Indian is not required to live in or maintain a dwelling on a reserve. Aboriginal Affairs and Northern Development Canada (AANDC) can issue a Secure Certificate of Indian Status card (SCIS card) or a Temporary Confirmation of Registration Document(TCRD) to an Indian. There are no other identity or membership cards that allow an Indian to obtain an exemption from paying consumption taxes.
For more information concerning identity cards, visit the AANDC website. To know more about the TCRD, consult GST/HST Notice 264, Sales Made to Indians and Documentary Evidence - Temporary Confirmation of Registration Document published by the Canada Revenue Agency.
The term "Indian band" designates a band council or a tribal council. The expression “band-empowered entity” designates a legal person, a commission, a council, an association, a society or any other organization that belongs to or is controlled by a band, a tribal council or a group of bands (except a tribal council).
For more information, consult GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy - Application of the GST/HST to Indians.
Consequences of Changes to the Organizational Structure of an Organization That Has Been Designated as a Municipality or as a Hospital Autority
An organization that has been designated as a municipality, that is determined to be a municipality or that has been designated as a hospital authority must notify Revenu Québec of any changes to its organizational structure, where such changes are the result of an amalgamation or a merger with another organization, or the result of the organization becoming incorporated.
This requirement applies to organizations such as
- non-profit organizations, charities, housing cooperatives and water haulers that have been designated as municipalities because they provide municipal services;
- public libraries, waste management bodies and volunteer fire-fighting organizations that have been determined to be municipalities;
- hospitals and health and social services centres that have been designated as hospital authorities because they operate public hospitals.
For GST and QST purposes, the new organization created as a result of the amalgamation, merger or incorporation is generally considered to be a separate person from any of the former organizations.
In addition, if the new organization makes taxable supplies of property or services in Québec, it must register for the GST and QST, unless it is a small supplier. It can also file an application to have its branches or divisions file separate returns. In some cases, the new organization can keep the GST and QST registration numbers of one of the former organizations.
To register the new organization for the GST and QST, use the Registering for Revenu Québec Files online service or form LM-1-V, Application for Registration. For more information, refer to the brochure Should I Register with Revenu Québec? (IN-202-V).
Note that an organization that is party to a merger or an amalgamation, or that has become incorporated, must generally cancel its GST and QST registration and file its GST and QST returns for the periods preceding the merger, amalgamation or incorporation. The GST and QST registration of any branches or divisions must also be cancelled. The request for cancellation must be made by filing form LM-1.A-V, Request for Cancellation or Variation of Registration. For more information, refer to GST/HST Memorandum 2-7, Cancellation of Registration, which is available on the website of the Canada Revenue Agency.
Status of the new organizationAn organization that was previously designated as a municipality, determined to be a municipality or designated as a hospital authority loses that status when a new organization is created as a result of that organization becoming incorporated or party to a merger or an amalgamation.
The new organization must therefore apply to be designated as a municipality, to be determined to be a municipality or to be designated as a hospital authority in order to be entitled to public service body rebates. Note that in order for certain supplies it makes to be exempt from GST and QST, in the same way that such supplies made by a municipality or a public institution are exempt from GST and QST, the new organization must be determined to be a municipality or designated as a hospital authority.
The organization must send its written application, along with supporting documents, to the following address:
Directeur des taxes à la consommation
Direction générale de la législation et du registraire des entreprises
Revenu Québec
3800, rue de Marly, secteur 5-2-2
Québec (Québec) G1X 4A5
Some organizations that are designated as municipalities, determined to be municipalities or designated as hospital authorities for GST and QST purposes are also registered charities for income tax purposes. An organization that merges with a registered charity must inform Revenu Québec of the merger.
Leasing of a Site in a Trailer Park
The leasing of a site on which a recreational unit is situated may be exempt from GST and QST even if the site is not located in a residential trailer park. The leasing of the site may be an exempt supply if the recreational unit occupying the site
- qualifies as a residential unit for GST and QST purposes;
- is permanently affixed to land for long-term use as a place of residence, in the same way as a residential unit;
- is used as a place of residence for individuals.
The term "recreational unit" refers to a mini-home, a park model trailer, a travel trailer or a similar unit that has residential attributes similar to those of a mobile home. However, a folding camping trailer (also known as a pop-up or tent trailer), a camper van, a truck camper, a motor home or a similar unit or vehicle is not considered to be a recreational unit.
The question of whether or not a recreational unit can be considered to be a residential unit, to be affixed to land for long-term use and to be used as a place of residence is a question of fact and is therefore determined on a case-by-case basis.
For more information, consult GST/QST Policy Statement P-104, Supply of Land for Recreational Units such as Mini homes, Park Model Trailers, and Travel Trailers, and GST/HST Memorandum 19.2, Residential Real Property.
Tax on Lodging Increased in the Manicouagan Tourism Region
As of May 1, 2013, the tax on lodging will increase to $3 per overnight stay in the Manicouagan tourism region. The tax applies to an accommodation unit that is billed and occupied after April 30, 2013.
For information on the transitional rules that apply further to this tax increase, click Tax on Lodging.
Conversion of a Commercial Building into a Residential Complex
Converting a commercial building into a residential complex can affect how the GST and QST apply when the immovable is sold or leased, even if no construction work or substantial renovations were carried out on it.
During the conversion, a person is deemed to have carried out substantial renovations (This link will open a new window) on a commercial building and to have been a builder (This link will open a new window) if the person:
- acquired the immovable to hold it or use it as a residential complex, or
- held the immovable for his or her business or commercial activities, and started using it as a residential complex.
If the immovable is sold immediately after being converted into a residential complex, GST and QST must be collected on the sale and remitted to Revenu Québec. However, if the converted immovable is leased for residential purposes, GST and QST must be calculated on the fair market value of the immovable and paid when the immovable is leased.
Note that an individual is not required to collect GST or QST on the sale of a commercial building acquired to be held or used exclusively as the residence of that individual or of a person related to that individual (including a former spouse).
The above-mentioned rules do not apply if a portion of the commercial building was already being used for residential purposes before the conversion.
For more information, see brochure IN-261-V, The QST and the GST/HST: How They Apply to Residential Complexes (construction or renovation).
Under certain circumstances, a person who paid GST and QST can claim a rebate for new or substantially renovated housing or residential rental property. For more information, see brochure IN-205-V, QST and GST/HST Rebates: New or Substantially Renovated Housing, New or Substantially Renovated Residential Rental Property.
Lift Chairs
Lift chairs are designed to help people with physical disabilities that make it difficult to sit down and rise up from chairs. They feature electric motors that raise the chair to an elevated position, making it easier for the person to sit down in or rise up from the chair.
Under both the GST and QST systems, the sale or lease of a lift chair is zero-rated if the chair meets all the following conditions:
- It has all the features of a chair.
- It is specially designed for use by an individual with a disability.
- It is supplied on the written order (prescription) of a physician, physiotherapist, occupational therapist or registered nurse for use by a consumer named in the prescription.
Only lift chairs sold or leased for the personal use of an individual named in a prescription are zero-rated; lift chairs sold or leased to a hospital, nursing home, long-term care facility or similar facility are not zero-rated.
For more information, see GST/HST Info Sheet GI-133, Application of the GST/HST to Lift Chairs.
Implementation of the Harmonized Sales Tax in Prince Edward Island
Since April 1, 2013, the harmonized sales tax (HST) has been applied in Prince Edward Island, at the rate of 14%. Generally speaking, the application of that tax is subject to the same rules governing the application of the goods and services tax (GST).
Businesses that are GST registrants must now collect HST on the taxable sales they make in that province.
For more information, click Implementation of the Harmonized Sales Tax in Prince Edward Island.
Payment of the QST and GST/HST by the Federal and Québec Governments
With the harmonization of the GST and QST systems, all federal and Québec government departments and bodies that were not required to pay consumption taxes must, beginning April 1, 2013, pay both the QST and GST/HST on taxable supplies they acquire.
For more information, click Changes to the QST System in 2013.
Increased Audit Activity in the Construction Sector
Over the next two years, we will be increasing the number of tax audits conducted in the masonry, excavation and interior finishing sectors. Meanwhile, the Commission de la construction, the Régie du bâtiment and the Commission de la santé et de la sécurité du travail will also be taking action, both independently and in conjunction with our own efforts.
Collectively, our goal is to ensure that the individuals and businesses in Québec's construction industry comply with the laws and rules in effect and fulfill their tax obligations, as well as to promote tax fairness and healthy competition.
We encourage taxpayers and agents that have failed to disclose information — and thereby avoided paying income tax or consumption taxes — to rectify their situation by making a voluntary disclosure. If the conditions for making a voluntary disclosure are met, we will not impose the penalties provided for by law, and we may waive our right to institute penal proceedings.
For more information, see the document titled Voluntary Disclosure: Rectifying Your Tax Situation (IN-309-V).
New Publications
In recent months, we have published or updated the following documents:
- Home Childcare Providers (IN-189-V)
- An Overview of the Tobacco Tax Act (IN-219-V)
- Flea Markets (IN-255-V)
- Checklist for New Businesses: QST and GST/HST (IN-256-V)
- Are You Self-Employed? Taxation Reference Tool (IN-300-V)
- Support Payments: Application for Exemption (IN-900-V)
- Interpreting the Transaction Details of Your Statement of Account: Creditor – Support Payments (IN-903.C-V)
- Interpreting the Transaction Details of Your Statement of Account: Debtor – Support Payments (IN-903.D-V )
- Support Payments Bulletin (IN-906-V)
For its part, the Canada Revenue Agency has published or updated the following documents:
GST/HST Guides- GST/HST Public Service Bodies' Rebate (RC4034)
- Quick Method of Accounting for GST/HST (RC4058)
- GST/HST Information for Charities (RC4082)
- Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases (RC4160)
- Documentary Evidence when Making Tax-Relieved Sales to Indians and Indian Bands over the Telephone, Internet and Other Electronic Means (GI-127)
- Harmonized Sales Tax: Proposed Enhancements to the British Columbia New Housing Rebates (GI-128)
- Harmonized Sales Tax: Proposed Enhancements to the British Columbia New Residential Rental Property Rebates (GI-129)
- Stated Price Net of the Enhanced British Columbia New Housing Rebate (GI-130)
- Phasing Out of the Penny (GI-131)
- Elimination of the HST in British Columbia: Builder Information Requirements for the Transition Period (GI-132)
- Application of the GST/HST to Lift Chairs (GI-133)
- Insurance - Appraisals of Damage Caused to Property (GI-134)
- Documentary Requirements for Claiming Input Tax Credits (8-4)
- Allowances (9-3)
- Reimbursements (9-4)
- Election for Nil Consideration (14-5)
- De Minimis Financial Institutions (17-7)
- Sales Made to Indians and Documentary Evidence - Temporary Confirmation of Registration Document (Notice 264)
- GST/HST Rulings Service - Eligibility of Tours under the Foreign Convention and Tour Incentive Program (Notice 273)
- For discussion purposes only - Draft GST/HST Policy Statement, Research Activities Undertaken by Hospital Authorities - Entitlement to Rebates and Tax Status of Services (Notice 274)
- For discussion purposes only – Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province (Notice 275)
- Elimination of the HST in British Columbia in 2013 – Transitional Rules for Real Property Including New Housing (Notice 276)
- Harmonized Sales Tax for Prince Edward Island – Questions and Answers on General Transitional Rules for Personal Property and Services (Notice 278)
- Harmonized Sales Tax for Prince Edward Island (P.E.I.) – Questions and Answers on Transitional Rules for Housing and Other Real Property Situated in P.E.I. (Notice 279)
- Section 172.1 Information Requirements (Notice 280)
- Subsection 172.1(4) Election for Specified Pension Entity (Notice 281)
- For discussion purposes only – Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of supply rules for determining whether a supply is made in a province (B-103)
New Publications
In recent months, Revenu Québec has published or updated the following documents:
- Information on Judicial Recourse (COM-332-V)
- Refundable Tax Credit for Childcare Expenses (IN-103-V)
- Instalment Payments of Income Tax (IN-105-V)
- Directors' Liabilities (IN-107-V)
- Checklist for New Businesses: Source Deductions and Employer Contributions (IN-111-V)
- Bankruptcy (IN-114-V)
- Guide to Filing the Income Tax Return of a Deceased Person (IN-117-V)
- Employment Expenses (IN-118-V)
- Capital Gains and Losses (IN-120-V)
- Crédit d'impôt pour francisation (IN-131)
- Business and Professional Income (IN-155-V)
- The QST and the GST/HST: How They Apply to Charities (IN-228-V)
- The Work Premium, Adapted Work Premium and Supplement to the Work Premium (IN-245-V)
- Consumption Taxes and Producers of Alcoholic Beverages (IN-263-V)
- New Businesses and Taxation (IN-307-V)
- Unclaimed Financial Assets (IN-327-V)
- Unclaimed Successions (IN-328-V)
- Fees for the Provisional Administration of Unclaimed Property (IN-330-V)
- Notices of quality concerning unclaimed financial assets (IN-502-V)
- Requirements for Computer-Generated Forms: Fuel Tax (IN-510-V)
- Information for Restaurateurs (IN-575-V)
- SRM: Procedure to Stop Using One and How to Transfer Ownership (IN-582.3-V)
- The QST, the GST/HST and Road Vehicles (IN-624-V)
- Support Payments Bulletin (IN-906-V)
- Moving? (IN-907-V)
For its part, the Canada Revenue Agency has published or updated the following documents:
GST/HST notices- For discussion purposes only – Draft GST/HST Memorandum 3.7, Natural Resources (Notice269)
- Elimination of the HST in British Columbia in 2013 (Notice270)
- Harmonized Sales Tax – Proposed Enhancements to the British Colombia New Housing Rebates and New Residential Rental Property Rebates (Notice272)
- GST/HST Rulings Service – Eligibility of Tours under the Foreign Convention and Tour Incentive Program (Notice273)
- Gift Certificates (P-202)
- GST/HST New Housing Rebate (RC4028)
- General Application for GST/HST Rebates (RC4033)
- Harmonized Sales Tax and the Provincial Motor Vehicle Tax (RC4100)
- GST/HST New Residential Rental Property Rebate (RC4231)
- Keeping Records (RC4409)
New Publications
In recent months, Revenu Québec has published or updated the following documents:
- Information on Judicial Recourse (COM-332-V)
- Refundable Tax Credit for Childcare Expenses (IN-103-V)
- Instalment Payments of Income Tax (IN-105-V)
- Directors' Liabilities (IN-107-V)
- Checklist for New Businesses: Source Deductions and Employer Contributions (IN-111-V)
- Bankruptcy (IN-114-V)
- Guide to Filing the Income Tax Return of a Deceased Person (IN-117-V)
- Employment Expenses (IN-118-V)
- Capital Gains and Losses (IN-120-V)
- Crédit d'impôt pour francisation (IN-131)
- Business and Professional Income (IN-155-V)
- The QST and the GST/HST: How They Apply to Charities (IN-228-V)
- The Work Premium, Adapted Work Premium and Supplement to the Work Premium (IN-245-V)
- Consumption Taxes and Producers of Alcoholic Beverages (IN-263-V)
- New Businesses and Taxation (IN-307-V)
- Unclaimed Financial Assets (IN-327-V)
- Unclaimed Successions (IN-328-V)
- Fees for the Provisional Administration of Unclaimed Property (IN-330-V)
- Notices of quality concerning unclaimed financial assets (IN-502-V)
- Requirements for Computer-Generated Forms: Fuel Tax (IN-510-V)
- Information for Restaurateurs (IN-575-V)
- SRM: Procedure to Stop Using One and How to Transfer Ownership (IN-582.3-V)
- The QST, the GST/HST and Road Vehicles (IN-624-V)
- Support Payments Bulletin (IN-906-V)
- Moving? (IN-907-V)
For its part, the Canada Revenue Agency has published or updated the following documents:
GST/HST notices- For discussion purposes only – Draft GST/HST Memorandum 3.7, Natural Resources (Notice269)
- Elimination of the HST in British Columbia in 2013 (Notice270)
- Harmonized Sales Tax – Proposed Enhancements to the British Colombia New Housing Rebates and New Residential Rental Property Rebates (Notice272)
- GST/HST Rulings Service – Eligibility of Tours under the Foreign Convention and Tour Incentive Program (Notice273)
- Gift Certificates (P-202)
- GST/HST New Housing Rebate (RC4028)
- General Application for GST/HST Rebates (RC4033)
- Harmonized Sales Tax and the Provincial Motor Vehicle Tax (RC4100)
- GST/HST New Residential Rental Property Rebate (RC4231)
- Keeping Records (RC4409)
