globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

05 November 2018

Canada: Foreign specified suppliers have less than two months to register for the Québec sales tax under province’s new specified registration system

Non-Québec resident suppliers that are located outside Canada and not registered for the purposes of the Goods and Services Tax (GST) meet the definition of “foreign specified suppliers” and have until 1 January 2019 to comply with the new provisions of the Act respecting the Québec sales tax (AQST). Under these new provisions, foreign specified suppliers are required to register for the Québec sales tax (the QST) using a new specified registration system and will have to collect the QST on taxable incorporeal movable property and services they supply in Québec to specified Québec consumers. Non-Québec resident suppliers located outside Canada that are registered for the GST and non-Québec resident suppliers located in Canada meet the definition of Canadian specified suppliers and have until 1 September 2019 to comply with the new provisions.

Revenu Québec has launched its new website to allow non-Québec resident suppliers located outside Canada to register online for the QST using the specified registration system in compliance with the new provisions included in sections 477.2 et seq. of the QSTA: https://www.revenuquebec.ca/en/roq/.

The online registration procedure has been simplified and does not require the filing of form LM 1, Application for Registration, prescribed for registration under the general QST registration system.

When registering online, a non-Québec resident supplier located outside Canada must provide information about the business, information relating to its activities and the names of persons of authority. Following registration, the nonresident supplier will obtain a QST number beginning with the prefix “NR.”

The new provisions of the AQST establish a significant distinction between the concepts of foreign specified supplier and Canadian specified supplier. Accordingly, it will be important to determine the GST status of non-Québec resident suppliers located outside Canada to confirm whether they are deemed to be Canadian specified suppliers because they are registered for GST purposes, or rather as foreign specified suppliers because they are not registered for GST purposes. In fact, only foreign specified suppliers are obliged to comply with the new AQST provisions as of 1 January 2019. Non-Québec resident suppliers registered for GST purposes, as Canadian specified suppliers, enjoy an additional time limit and have until 1 September 2019 to register under the specified registration system.

For further discussion of the Québec e-commerce measures, see EY Global Tax Alerts, Quebec announces QST and e-commerce measures, dated 5 April 2018 and Québec: Bill 150 respecting the QST and e-commerce receives Royal Assent, dated 12 July 2018.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (Canada), Montréal
  • Jean-Hugues Chabot | jean-hugues.chabot@ca.ey.com
  • Manon Jubinville | manon.jubinville@ca.ey.com
  • Louis Fournier | louis.fournier@ca.ey.com
  • Jadys Bourdelais | jadys.bourdelais@ca.ey.com
  • Jean-Baptiste Congy | jb.congy@ca.ey.com
  • Catherine Dickner | catherine.dickner@ca.ey.com

ATTACHMENT

 

Document ID: 2018-6285

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more