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.