Quebec Sales Tax rate change and calculation change - January 1, 2013

By
Real Estate Agent

Quebec Sales Tax rate change and calculation change - January 1, 2013

On January 1, 2013, the method of calculating Quebec Sales Tax ("QST") changed.  Prior to January 1, 2013, QST was charged on top of the selling price AND GST (i.e. the QST was a tax on tax)  After December 31, 2012.  the QST is charged directly on the selling price before GST. 

At the same time, the Quebec government also increased the QST rate from 9.5% to 9.975%.  The amount of QST charged under the old calculation using the old 9.5% rate is the same as the amount of QST charged using the new 9.975% rate.

The above changes relate to the decision by the Quebec government to harmonize the QST with the federal GST.

There are also some other changes that affect certain industries and types of transactions that also take place on January 1, 2013,  Certain changes relating to the harmonization take place on April 1, 2013.  Transition rules and /or grandfathering rules may apply in certain circumstances.

This article is intended to inform readers of developments as of January 1, 2013, and is neither a definitive analysis of the law nor a substitute for professional advice. Readers should discuss with appropriate professional tax advisors, financial advisors and/or other advisors and how the information may apply to their specific situations. E&OE.

Quebec Sales Tax rate change and calculation change - January 1, 2013

Posted by

Are you looking to move within or relocate to the Greater Toronto Area?

Marc Swartz, CPA, CA serves clients in the Greater Toronto Area of Ontario, Canada. I primarily focus on Toronto, North York, Scarborough, York Region (including Markham, Unionville, Stouffville, Thornhill and Richmond Hill) and Durham Region (Pickering, Ajax and Whitby).

Make the Right Move.  Consult Marc Swartz.


Marc Swartz, CPA, CA

Copyright Marc Swartz. All rights reserved worldwide. E&OE. Not intended to solicit clients already under contract with a brokerage.

Read the RSS feed of Marc Swartz.  Google+       Follow Marc Swartz on Twitter.  Connect with Marc Swartz on LinkedIn.   See my videos on YouTube.  Learn about real estate, mortgages, communities and more!  See photographs taken by Marc Swartz on Flickr.  Friend Marc Swartz on Facebook.(friend) Become a fan of the real estate business page of Marc Swartz on Facebook.(fan)

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
Quebec
Tags:
sales tax
qst

Spam prevention
Show All Comments
Rainmaker
1,318,298
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Thanks for the update in the taxe rates and calculations Marc.

Good to hear from you again.

Jan 02, 2013 12:12 AM #2
Show All Comments
Rainmaker
830,469

Marc Swartz

CPA, CA - Toronto, Durham & York Regions, Ontario
Ask me a question
*
*
*
Spam prevention

Additional Information