News and Media
22/12/2011
Please be reminded that the Quebec Sales Tax (QST) will increase by 1% to 9.5% effective January 1st, 2012
Most goods and services in Quebec are subject to GST and QST. The GST is calculated on the selling price at a rate of 5%, and the QST is calculated on the selling price plus the GST at a rate of 8.5%. Note that the QST will increase January 1, 2012 to 9.5%.
Commercial goods imported by Quebec-resident companies will continue to be subject to GST only. GST of 5% will continue to apply to services such as brokerage, and QST of 9.5% will apply to the tax-paid brokerage amount (amount plus GST) beginning January 1, 2012.
The Memorandum of Agreement (MOA) between Canada and Quebec, signed on September 30, 2011, commits Quebec to make a number of changes to the Quebec Sales Tax (QST) in order to harmonize with the Goods and Services Tax. As part of this agreement, Quebec will generally continue to administer the QST and the Goods and Services Tax/Harmonized Sales Tax (GST/HST) in the Province, and the QST will continue to be legislated by Quebec.
The agreement will result in harmonization of the GST and QST tax bases and tax rules going forward, and is expected to lower the compliance burden for businesses.
Additional information on the QST increase is available from Revenu Québec at:
Consumption taxes - GST and QST
Additional information on the application of GST, HST and QST is available from our technical consulting group.
Quebec Sales Tax (QST) Increase January 1, 2012


