Quebec Taxes | Quebec taxes

If you have established your business in Quebec, know that you must register for various Came back to Quebec and fulfill your tax obligations relating to taxes. Note that depending on the type of professional activity you carry out, the taxes applied will not be the same as those paid by other professionals. JKB Services, this consulting agency working in the offer of accounting services, can provide you with all the information you need to know on the subject.

GST / HST and QST

If you sell or provide goods and services, you must pay the goods and services tax (GST) as well as the Quebec sales tax (QST). In some provinces, both taxes are being replaced by the Harmonized Sales Tax (HST).

To find out if you need to register your business in the files of the GST and QST, you must consult the ground rules. Thus, you will have all the details you need, particularly on application taxes depending on the type of sale. The rules also give you details of your obligations regarding the application of taxes.

Note that after registering your business for the GST and QST, you can collect taxes from your customers. You can also calculate your input tax credits and refunds. Also, don't forget to report the GST and QST for each reporting period.

Tobacco tax

If your business operates in the tobacco industry in Quebec, you must be exempt from tobacco tax. The obligations you have towards the government of Quebec vary according to your activities.

Note that as a tobacco seller you have responsibilities as a seller. If you do not remit the tobacco tax by the time specified in the payment schedule, you risk paying penalties. There are also what are known as non-filing penalties, but they only apply to people who fail to file their return.

For those who violate the tobacco tax law, fines, penalties and even jail time are applied.

Fuel taxes

For those who carry out activities related to the fuel industry in Quebec, they must pay the fuel tax. Their obligations depend on their business activities.

Those who buy fuel to power a locomotive engine must declare this tax to Revenu Québec and pay it.

For those who sell fuel, they have a responsibility as sellers of fuel. In the case of retail sale on an Indian reserve or establishment, customers may qualify for tax exemption.

Those who have paid fuel tax may be eligible for a refund under certain circumstances.

In the event of late declaration or remittance of the tax, penalties and interest await those concerned. In case of non-compliance with the law on fuel tax, prison sentences can be applied.

Tax on alcoholic beverages

For those who have a business whose activities are related to the alcoholic beverage industry, they must pay specific taxes on alcoholic beverages. They must also pay the GST and the QST. Of course, all of these obligations depend on the activities.

Accommodation tax

If you operate an accommodation establishment, you must pay the tax on lodging. To do this, there is a procedure to follow which is summarized as follows:

  • Registration for the tax on lodging;
  • Calculation and collection of the tax on lodging;
  • Accommodation tax rebate received.

Duty on new tires

If your activities consist of renting or selling new tires or road vehicles equipped with affected new tires, you must pay a duty. To do this, here are the steps to follow:

  • Registration for the QST;
  • Collection of specific duty on new tires;
  • Filing of declarations and remission of the specific duty on new tires.

Insurance premium tax

If you benefit from taxable insurance premiums in the course of your professional activities, you must meet your obligations relating to the tax on insurance premiums. Three steps must be observed, namely:

  • Your registration for the tax on insurance premiums;
  • The collection of tax on insurance premiums;
  • The production of a return followed by a remission of the tax on insurance premiums.

Pari-mutuel tax

If during a racing program held in Quebec or elsewhere, you receive stakes via a pari-mutuel system, you must collect a tax on the pari-mutuel. This tax is 2.5% and is calculated according to the amount of the stake. It must be submitted with the Declaration of Stakes Received During a Race Program (VD-539.A).

For payment, you have two options. Either you pay it in person at the counter of a financial institution, evening by mail.

In the event that your check has been refused by the financial institution because of insufficient funds, you are required to pay administrative fees. These are added to your debt and are considered from the date of denial.

Municipal tax for 9-1-1

If your professional activities relate to the provision of telephone services in the territory of Quebec municipalities, you are required to collect and then remit the municipal tax for 9-1-1 to Revenu Quebec. For this, you must respect the following steps:

  • Registration in the municipal tax file for 9-1-1;
  • Collection of municipal tax for 9-1-1 from all subscribers of your telephone service;
  • Filing of returns and remittance of the municipal tax for 9-1-1.

For more information on Quebec taxes and Quebec taxes, do not hesitate to contact the accounting and tax services in Montreal from JKB Services if you want to respect a professional approach to the tax declaration.

Reverse taxes, Reverse tax calculation

Reverse calculation of Quebec taxes: Intro

If you have a business established in Quebec, you must register for several files on the Revenu Quebec site and pay taxes to operate in full compliance with the laws in force. Among the files to which you must register are the GST and QST files. Note that to calculate these taxes, you have two methods: the normal calculation and the reverse tax calculation. JKB Services, a consulting agency offering accounting services in Montreal , can assist you in this calculation so that you do not make the slightest mistake.

How to calculate the GST and QST

Know that calculate the GST and QST is usually done in two stages. The first step is to calculate the GST at the rate of 5% on the sale price. The QST is subsequently added to the same selling price knowing that it is at the rate of 9.975%.

Also note that the calculation of the GST and the QST can also be done in one step. For this, the rate of 14.975% must be used for the calculation of the two taxes. The amount obtained includes GST and QST for this purpose.

What about the reverse tax calculation?

To be able to do a reverse calculation GST and QST, you have to consider the amount with taxes and split it at the combined rate of 1.14975. The original amount not including the two taxes is then obtained. To obtain the amount of GST, multiply the amount without taxes obtained by 5%. On the other hand, to get the amount of the QST, multiply the amount without taxes by 9.975%.

Note that a margin of error of $ 0.01 is accepted, as rounding of amounts is necessary to facilitate the calculation.

To perform the reverse calculation of taxes, you can use online tools. This option is very interesting as long as you choose the most effective tools.

How to quickly and easily calculate the amounts of GST and QST payable?

This is an accounting method that has proven to be easier to facilitate the calculation of the amounts of GST and QST payable to Revenu Québec. With this method, the Quebec tax calculation only takes a few minutes and the result is indisputable. Note also that there is no need to claim input tax credits (ITC) or input tax refunds (ITRs) for purchases related to commercial activities or for costs of current operations. The reason is that the quick method of accounting takes this into account.

In order to find out the partial amount of GST payable, the total taxable supplies including GST must be multiplied by the applicable rate. The same calculation method should be used to find out the partial amount of the QST to be paid.

You must also calculate the 1% credit on the eligible portion of the taxable supplies and then deduct the partial amounts of taxes. At each reporting period, the amounts calculated must be remitted to Revenu Québec.

The following transactions are not to be considered in the calculation of the total of the supplies:

  • Zero-rated supplies;
  • Supplies addressed to Indians;
  • Sales of real estate and fixed assets.

Note that you can use the quick method of accounting if the QST and GST are included in your selling prices or if you indicate them separately. Keep the documents relating to supplies and purchases made in a safe place.

If you supply in participating provinces, rates may vary depending on the location of your business. They will also be different if you charged HST and GST on your taxable supplies.

For more information on this subject, you can consult the guide entitled "The Quick Method of Accounting for GST / HST. This guide is available from the Canada Revenue Agency website

Know that you don't have to claim RTI or CTI for all of your expenses. These include telephone, rent and even heating costs. On the other hand, you have the right to claim ITRs and ITCs for land and certain goods such as office furniture or even a car. Amounts can be claimed in QST and GST returns.

Other information you should know about the GST and QST

The goods and services tax (GST) and the Quebec sales tax (QST) are mandatory in Quebec for all those who sell or provide goods and services.

To know whether or not to register your business for the GST and QST, you must read the basic rules. These contain all the information directly or indirectly related to the applicable taxes depending on the location chosen for sale or rental. In order to file your GST and QST return, you must follow a number of steps, starting with registering your business for the GST and QST. You must then collect the taxes from your customers. The next step is to calculate the input tax refund credits. All you have to do is file your GST and QST return for all reporting periods.

It should be noted that the terms of application of taxes must be respected regardless of the situation. Those who do not respect them will get penalties, the magnitude of which depends on the severity of the error.

So that you do not make a mistake when calculating the tax or when registering for GST and QST files, JKB Services can assist you in all the steps to follow. Do not hesitate to call on tax services in Montreal from JKB Services if you want to respect a professional approach to the tax declaration.

Solidarity tax credit

The solidarity tax credit is a refundable tax credit intended to help households with average and even low incomes. This credit is calculated based on your situation on December 31 of the previous year. In order to benefit from the tax credit, you must apply for it when filing your income tax return and comply with the conditions for granting it. JKB Services can assist you in the steps to take and help you optimize your chances of benefiting from the solidarity loan.

What conditions must be met to apply for a solidarity tax credit?

To be able to apply for solidarity tax credit, a number of conditions must be met. In fact, not everyone is entitled to this credit as it is aid intended for households that need it most. Here are the criteria to be met to be authorized to apply for a solidarity tax credit:

Be 18 years of age or older:

This age criterion means that you have to be of legal age to qualify for this aid so that it is spent as it should, but not for other less important purposes. In other words, the granting of this credit requires seriousness on the part of the beneficiary so that the granted funds are used for the intended purpose.

However, be aware that if you are under 18, you can still claim the solidarity tax credit provided you are in the following situations:

  • You are married or you are the father or mother to a child who lives with you.
  • You are recognized as an emancipated minor by the court or any other competent authority.

Be resident in Quebec:

You and your spouse were:

  • Citizens in Canada;
  • A permanent resident or an individual under government protection under the Immigration and Refugee Protection Act.
  • A temporary resident or holder of a temporary resident permit who has lived in Canada for the past 18 months.

Signing up for direct deposit: a step not to be overlooked

To claim the Solidarity Tax Credit, you must first register for direct deposit.

In order for this registration to proceed as it should, do not forget to inform the manager concerned of any change of bank account. The reason is that you risk losing your right to the tax credit if it is not paid on time due to a change in bank account.

To register for the solidarity tax credit, here are the steps to follow. Note that you have three options for registration:

  • Use of the online service relating todirect deposit enrollment : If you have registered for the Revenu Québec online service, you can register for direct deposit immediately. If you have not yet registered for this online service, you must register here.
  • The second registration option is to attach your income tax return to a specimen check issued by a banking establishment established in Canada or having a subsidiary in Canada. The check in question must bear the words "canceled" on the front as well as your personal information, including your name and social insurance number.
  • The third option is to complete the direct deposit enrollment request form (LM-3.Q or LM-3.M) and attach it to the income tax return you have made. Note that if you live near Quebec City, you need the LM-3.Q form. On the other hand, if you are near Montreal, opt for the LM-3.M form. The only difference between these two forms is in the address where they will be sent.

Revenu Québec will notify you of the total amount of your solidarity tax credit as well as the information to be taken into account for the calculation.

If you have chosen to hire the services of JKB Services, we will not hesitate to give you the necessary assistance so that you can quickly register for the solidarity tax credit

How to calculate the solidarity tax credit?

The first thing you should know is that for the payment period from July 2017 to June 2018, the solidarity tax credit is calculated based on your situation on December 31, 2016. For the calculation, the amounts you may have entitlement for each of the three specific components of the solidarity tax credit are added. The components in question are:

  • The component related to the QST;
  • The housing component;
  • The component relating to residence on the territory of a northern village.
  • Also keep in mind that the amount obtained can be deducted according to your family income.

Family income that can be met via the solidarity tax credit

In your return, your family income is mentioned on line 275. However, if on December 31, 2016, you had a spouse, your family income would be the amount on line 275 added to the amount on line 275 for your spouse.

Note that if your family income is greater than or equal to $ 51,279, you will not be entitled to the solidarity tax credit. However, if it is below this figure, complete Annex D. After your registration, the officials concerned will determine whether you may be entitled to the solidarity tax credit.

If your main residence is in a Nordic village, the family income table below does not apply to you. You just have to fill in Annex D.

Here is a table showing the maximum family income according to family situation as of December 31, 2016:

Family situation Income amount ($) Additional income for dependent children ($) Maximum family income ($)
Individual with spouse 55828
Single parent family 51279
Individual without spouse 51279 51279

 

If you want to know how much tax credit you can claim, use thecalculation tool from Revenu Québec. The JKB Services team can also assist you in this task.

 

Quebec Provincial Tax Credits

In Quebec, French and the official language. If you decide to work in this Canadian province, there is a certain amount of information you should know about Quebec provincial tax credits and tax credits. With JKB Services, a company specializing in providing accounting services, you can get everything you need to know about tax credits.

Note that unlike other Canadian provinces, the tax rates recorded in Quebec are among the highest in the country. This situation gives the population a certain advantage, because the government of Quebec, thanks to the high tax rate, can offer many benefits that other governments do not. This includes subsidized care for children. Also note that Quebec offers several tax credits to the most vulnerable families and to individuals with average or low income. The details.

The tax rate in Quebec

In Quebec, the tax structure is progressive. This is the same system used in most provinces in Canada with the exception of Alberta which has opted for a flat tax. Thus, in Quebec, individuals who earn a high income pay a significantly higher tax rate than other taxpayers. If you want to know the amount of your provincial tax, complete Form 428. The information you provide in this document is taken into account for the estimate of the tax you owe. JKB Accounting and management services can help you determine the amount of tax you owe. This professional specializing in accounting strategies will also not hesitate to provide you with the best advice in all steps related to payment of tax.

Note that in Quebec, the amount of tax is revised upwards each year according to inflation. The following figures show Quebec's tax brackets in 2014.

  • For an annual income of $ 41,495, the tax rate is 16%
  • For annual income between $ 41,495 and $ 82,985, the tax rate is 20%
  • For annual income between $ 82,985 and $ 100,970, the tax rate is 24%
  • For annual income over $ 100,970, the tax rate rises to 25.75%

What you need to know about the solidarity tax credit

This type of credit was introduced in July 2011. It incorporates three tax credits, namely the refundable tax credit for individuals living in the territory of a northern village, the Quebec sales tax credit and the refund. property taxes, the property tax refund or the Quebec sales tax credit.

To qualify for this credit, you must be 18 years or older. You must also reside in Quebec and be an authorized resident for immigration purposes. Whether you are single or living in a conjugal relationship, you are only entitled to one tax credit. Remember to provide your banking information when you apply, as the credit amount goes there immediately after your application is approved.

Note that if you live in an area that qualifies as a northern village, you have the option of claiming a spousal amount of $ 1,620 and a base amount.

If you need to know any other information, please do not hesitate to contact JKB Services. The latter will not hesitate to provide you with the information you need and to provide you with the best advice as to the steps to take to apply for a solidarity tax credit .

Child assistance payments: the main thing to know

If you live in Quebec and your child was born in that province, you can benefit from the Quebec child assistance payment. Note that if your child was born in Quebec, you do not need to make any request. He is immediately registered when you register his birth with the Town Hall.

Note that even if your child was born in Quebec, the amount of child assistance that you receive may be different from that of other families who also have children living in Quebec. The reason is that the awarding of this offer depends on four criteria including:

  • The number of children under 18 who are still in your care;
  • The number of children in your care;
  • Family income;
  • The situation of your family (single parent or household with two parents).

Other criteria may also be taken into account, but those mentioned are the most considered in the context of support for children in Quebec.

Child assistance is tax exempt because it is similar to the Canada Child Tax Benefit. Note that support for children in Quebec is revised according to the cost of living. The reason is that the government wants the aid given to really contribute to improving the living conditions of beneficiaries.

If you want more details on child support, do not hesitate to contact JKB Services. We are a company specializing in offering accounting services. We can also provide good advice in many areas including those relating to tax credit. Know that our structure has existed for several years. Our team has many years of experience in providing specialized accounting and advisory services to both individuals and professionals.

For more information and for a Montreal tax service very professional, Do not hesitate to contact the JKB Services team by calling us +1 514-561-4975 or complete the form on this page. 

 

 

 

 

Tax Calculator | Quebec Tax Calculation

How to calculate taxes in Quebec

After registering your business, you can be sure that it is publicly known and legally exists by being registered in the Register of the Registrar of Enterprises. After this step, you need to register your company for various files. Once this step is completed, you must be able to calculate taxes or even use a tax calculator. JKB Services, a professional offering accounting services in Montreal can assist you in these tasks. Our team will be happy to accompany you step by step in this process so that everything goes as it should.

What to know about registering for different files

Did you know that businesses and employers must collect various duties and taxes and that they are entitled to deduct at source? Thus, they must calculate the amount due in order to remit them within the deadlines set in advance. They then have the status of agents. In the case of the employer, he must subscribe to one or more files administered by Revenus Québec. These include the GST file, the QST file and the source deductions file.

To register for one of these files, all you need to do is complete the Registration Request form (LM-1) or the Individual in Business Registration Request form (LM-1.PA) and return it. at Revenu Québec. You can download this form from the Revenu Quebec website. It is also available in its offices. If you want to register online, you can use the "Registration of a new business in the files of Revenu Québec" service.

Once you have completed your registration for the QST file, you will obtain a registration certificate which will include, among other things, your identification number as well as the number of your file relating to the QST. After registering for the GST, you will receive a letter attesting to your registration.

If your structure is a corporation, Revenu Québec will give you a tax number. With this number, you will have no problem declaring your business if it is headquartered in Quebec. Note that your number refers to the information you provided in your Registration Request form (LM-1). Your number will be assigned when the Registraire des entreprises informs Revenu Quebec that you have incorporated your company (with a Quebec charter). It can also be assigned to you when you start filing your first corporate income tax return.

The different taxes

There are three types of taxes that you should collect depending on your type of activity. To collect these taxes, you must register for the GST and QST files or the source deductions file. Of course, the choice of which file to subscribe to depends on the type of activity being performed.

GST and QST files

If you supply taxable goods or services, you normally have to collect GST and QST. Note that by registering your company for the GST, it is automatically registered for the harmonious sales tax or HST. This is a tax that applies at the rate of 15%.

Source deductions file

If in your activities you plan to pay wages to employees, you must register as an employer in the withholding tax file.

Note that when you pay a salary or remuneration, you must withhold income tax from your employees' salaries as well as withholdings relating to the Quebec Pension Plan to remit them to Revenu Québec.

In addition, as an employer, you must also pay Revenu Québec contributions to the Health Services Fund, the Commission des normes du travail, the Québec Pension Plan or the National Hand Training Fund. -work.

Calculation of taxes

To calculate the GST and QST, you must adhere to specific rates. If you make a mistake, you risk reducing your profits or, on the contrary, offering a product or service at too high a price. To avoid such a situation, know the GST is calculated at the rate of 7% on the sale price and the QST is calculated at the rate of 7.5% at the price already including the GST.

Here is an example that perfectly illustrates this saying:

If you sell an item 100%, GST will be $ 7 and QST $ 8.03. Thus, the item in question will sell for $ 115.03 incl.

Some details to know

Now that you know how to register for the GST, the QST or the source deductions file, here is some information you should know.

Note that you do not have to subscribe to these files if you are considered a small supplier. In the event that you are a member of a partnership, only the partnership can register.

Note that if the term taxable is used in your registration form, it means both zero-rated and taxable. Thus, if you make taxable sales, you must register for the GST and QST files. This registration is compulsory if:

  • You are not a small supplier;
  • You get orders (by mail or email) for products to send to Canada;
  • Your business operates in the rental of taxis or limousines.

Specifics of the QST:

Note that you must register for the QST regardless of the annual amount of your taxable sales. This remains valid whether or not you are registered for the GST file. You must register for the QST if:

  • You retail tobacco products;
  • You retail fuel;
  • You sell alcoholic beverages when you do not have a reunion permit;
  • You sell or lease new tires;
  • You sell or lease new or used road cars for at least 12 months.

JKB Accounting Services. peut vous donner davantage d’informations à ce sujet et vous assister quand à votre inscription à différents fichiers ou encore au calcul taxes québec. Pour davantage d’informations, Do not hesitate to contact the JKB Services team by calling us +1 514-561-4975 or complete the form on this page. 

Tax Calculation GST and QST 2017 in Quebec | Quebec Tax Calculation

After having started your business, you have decided to register your business for the GST and QST. Our consulting agency, JKB Services, can assist you in this process and provide you with all the help you need. You should know that this step is crucial for the development of your business, because it is only after that it can exercise legally and have a specific status. More details on this.

Registration for GST and QST files

To register for the GST and QST, four methods are available to you:

  • Use of the online service relating to the registration of a start-up business (withholding taxes and corporate income tax, GST, QST and other taxes)
  • Use of an online service relating to the registration of a business in the files of Revenu Québec
  • Call to site customer service revenuquebec.ca
  • Completion of a registration request form.

In case you are not familiar with the formalities involved in legalizing a business, we can help you as we are good at providing accounting services.

Note that before making your first taxable supply in Quebec, you must submit a request for registration in the QST file. This is mandatory if you are not acting as a small supplier. After registering, you immediately collect QST.

Also be aware that before the 30th day following your first taxable supply with a status other than small supplier, you are required to submit a request for registration in the GST file.

QST and GST declaration

Once you are registered for the GST and the QST, you are required to file a related return for each reporting period. This declaration must be made even though you do not benefit from any reimbursement or that you do not owe any sum. As the QST and GST are administered by Revenu Québec, you can choose to make only one return that includes GST / HST and QST.

Note that penalties are applied in case of delay. These penalties relate to non-production or to interest. To avoid them, do not hesitate to periodically consult the various payment schedules relating to these taxes. These calendars, you can consult them here. Also be aware that a penalty is also applied in the event that you have not submitted your returns electronically when you are required to do so.

We believe that the Government of Quebec and the Government of Canada are working closely together. Thus, Revenu Québec takes care of the administration of the GST in Quebec. If you have established the head office of your business in this city, you must contact Revenu Québec to register for the GST but also for the QST file.

The advantages of registering for GST and QST

In addition to carrying out your activities legally, registering your business for the GST and QST gives you access to a number of advantages, including your credibility with your customers. Also be aware that by paying these taxes, you are entitled to recover them from the products and services you sell. In other words, the GST is refunded to you in the form of an input tax credit (ITC) and the QST in the form of an input tax refund (ITR).

How do you know if you should collect the tax?

If you want to know whether or not you have to collect QST and GST, determine the nature of the sale you make when you supply a good or a service to a customer. Indeed, there are different types of sale namely taxable sale, zero-rated sale and exempt sale.

Taxable sale:

Taxable sale qualifies any sale to which a tax applies. Note that most sales are taxable and require you to collect GST and QST. Taxable sales also entitle you to ITCs and ITRs.

Zero-rated sale:

The zero-rated sale, as the terms indicate, is taxable at 0%. When you make this type of sale, you don't have to collect GST and QST. Among the goods and services to which this type of sale applies are:

  • Certain passenger or freight transport services;
  • Financial services, in the QST regime Basic food products;
  • Most agricultural and fishing products;
  • Certain goods or services shipped outside Canada or Quebec;
  • Prescription drugs;
  • Certain medical and assistive devices.

The exempt sale:

Exempt sales mean any non-taxable sale. This type of sale does not require the collection of either the GST or the QST. Examples of exempt sales include:

  • the rent of a residential lease for a period of at least one month;
  • charities, hospitals, universities);
  • most financial services, under the GST regime;
  • certain educational services;
  • certain services rendered by public sector bodies (eg governments);
  • Exempt sales do not entitle you to ITCs or ITRs;
  • apartment buildings that are not new when sold (for example, a
  • house, condominium, apartment building);
  • most childcare services;
  • most health services, especially dental services.

How to calculate the taxes?

The Quebec tax calculation depends on the calculation method adopted by your cash register. If the latter performs the calculation in two steps, the rate you must use to calculate the QST is 9.975%. Thus, the GST is calculated at the rate of 5% on the sale price. Subsequently, the cash register will also calculate the QST on the sale price. If your caisse does not process figures with three decimal places, you can round the percentage to 9.97%.

Also, if your cash register calculates GST and QST in one step, you should use the rate of 14.975% to calculate the two taxes. The amount obtained will then include GST and QST. A rounding of the rate to 14.97% is also possible if your fund does not take three decimal places into account.

For more information, do not hesitate to contact the JKB Services team for your accounting services in Montreal and your tax services in Montreal.

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