Quebec Sales Tax:
Be better informed… and save!

Over time, the vast majority of provinces in Canada, including Quebec, have introduced a tax on goods and services sold within their jurisdiction. That's just the way it is; there's nothing we can do about it. However, it's important to note that certain products are exempt from this rule and, in some cases, you may even be eligible for a rebate. Here are some useful tips.

What is the Quebec Sales Tax?

The Quebec Sales Tax, better known by its acronym QST, is one of many consumption taxes in Canada. It is collected on most goods and services sold in the province. The QST is in addition to the Goods and Services Tax (GST), which applies to the majority of goods and services in Canada—and Quebec, of course. The GST rate is 5% on the sale price, and the QST rate is 9.975% on the same sale price, before GST. Two taxes appear on your invoices in Quebec.

Some provinces, such as Ontario, have opted to combine federal and provincial sales taxes into one tax. This is known as the Harmonized Sales Tax (HST). In Ontario, the HST is 13%.

What products and services does Quebec sales tax apply to?

Please note that most products and services are subject to QST. However, some of them are exempt. This includes books sold in bookstores, health and education services, child care and the purchase of a residential property that is not new.

Other goods and services are sold without tax or, if you prefer, are taxable at 0% for both QST and GST. These include insurance premiums, feminine hygiene products, children's diapers and basic food items such as meat, fruits and vegetables, eggs, bread, etc. “As long as you pay attention to what you put in your basket, there is a way in Quebec to do your groceries practically without paying taxes, or at least paying very little,” says Jin Woo Kim, a tax specialist. For example, pastries sold individually are taxable, whereas they are not taxable when sold in packs of six or more. Flavoured milk—chocolate, strawberry, vanilla, etc.—is taxable, unless it is sold in containers of one litre or more. The same principle applies to ice cream: containers of 500 ml or more are not taxable, while smaller sizes are.

Finally, many goods and services are also subject to specific taxes, in addition to GST and QST. These include:

• Alcoholic beverages: $0.63 per litre for beer and $1.40 per litre for other alcoholic beverages.
• Fuels: The tax varies depending on the type of fuel and the region in which you are located. In Montreal, for example, it amounts to $0.22 per litre of gasoline. However, some fuels are exempt, such as natural gas and propane.
• Accommodation: Stays of less than 32 days in a row in certain types of accommodation and in certain regions are subject to an additional tax of 3.5% on the price of the night. Good to know: GST and QST are applied on the total room rate AND this accommodation tax. Your room costs $100? GST and QST will apply on $103.50.
• Insurance premiums: Although GST and QST do not apply to insurance premiums, they are subject to a 9% tax. The same applies to premiums paid to the Société de l'assurance automobile du Québec (SAAQ).

How to calculate the Quebec Sales Tax?

Since most goods and services purchased in Quebec are taxed at 14.975%, store prices should not be relied upon when shopping. This reminder may seem obvious, but it can save you from an unpleasant surprise at the checkout, especially if you're the type of person who sets a budget and wants to stick to it. These two concrete examples will help you understand how Quebec Sales Tax is calculated. Please note that QST is applied on the price before taxes, not on the amount including GST.

• You buy a pair of shoes for $100, the calculation is as follows:
  • Price before taxes: $100
  • GST: $5 (5%)
  • QST: $9.98 (9.975%)
  • Total including taxes: $114.98

• You buy a sofa for $1,000, the calculation is as follows:
  • Price before taxes: $1,000
  • GST: $50 (5%)
  • QST: $99.75 (9.975%)
  • Total including taxes: $1,149.75

In what situations can I get a Quebec Sales Tax rebate?

QST paid on the purchase of certain goods and services—or in specific situations—may be refunded in whole or in part. Yet many people are unaware of this. “For example, if you buy a house or have a new home built for less than $300,000 (which is increasingly rare), you have up to two years to claim a portion of the QST paid. It can be thousands of dollars,” adds Kim. If applicable, submit a claim by filling out the designated form and sending it by email along with a copy of the sales contract. Other situations in which you may be eligible for a full or partial rebate include:

• Be a self-employed individual registered for GST/QST and have paid QST on purchases of work-related office equipment and supplies (full rebate);
• Purchase or build a rental property, or carry out major renovations on it (partial rebate);
• Be an employee or member of a partnership (company with more than one owner) and have paid QST on work-related expenses;
• Be a First Nations person (Status Indian as defined in the Indian Act) (full rebate);
• Be a Canadian resident living outside Quebec and purchase tangible personal property or a road vehicle in Quebec to take home (full rebate);
• Be a foreign representative and purchase goods and services on behalf of a diplomatic mission, consular post or international organization (full rebate).

How do I claim the QST rebate on the tax return?

To claim the QST rebate, you must complete the General GST/HST and QST Rebate form and attach it to the income tax return you send to Revenu Québec.

You can make things easier for yourself with TurboTax Online. In addition to claiming the QST rebate, TurboTax Online helps you claim a host of other credits, benefits and deductions, such as the Solidarity Credit, Caregiver Credit, Family Allowance, Home Care Credit, and much more.

Your taxes are done right, any way you choose. File on your own or with live help. You can be confident that your taxes are done right with TurboTax.

Learn more