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

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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

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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).

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Topic:
Real Estate General Information
Location:
Quebec
Tags:
sales tax
qst

Comments 1 New Comment

Rainmaker
1,092,482
Tom Arstingstall
General Contractor, Sacramento, CA - 916-765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366

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

Good to hear from you again.

January 02, 2013 12:12 AM
Rainmaker
821,559

Marc Swartz

CPA, CA - Toronto, Durham & York Regions, Ontario
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