GST and QST for Self-Employed Workers: The Complete 2026 Guide
Just starting out as a self-employed worker in Quebec and wondering how to handle GST and QST? When do you need to register? Which rates apply? How do you recover the taxes you paid on business expenses? This complete 2026 guide answers every question with concrete examples and practical tips.
What Are GST and QST?
In Canada, two consumption taxes apply to most goods and services:
- GST (Goods and Services Tax): a federal tax of 5%, administered by the Canada Revenue Agency (CRA).
- QST (Quebec Sales Tax): a provincial tax of 9.975%, administered by Revenu Québec.
Combined, these taxes total 14.975% in Quebec. As a self-employed worker, you must collect these taxes from your clients and then remit them to the governments on a schedule determined by your sales volume.
When Do You Have to Register for GST and QST?
The rule is simple and essential to know: as soon as your gross revenues exceed $30,000 over four consecutive calendar quarters, you are required to register for both GST and QST.
Good to know: the $30,000 threshold does not apply to the calendar year but to any four consecutive quarters. If you reach that amount in June 2026 after starting in August 2025, you must register immediately.
Why Register Voluntarily, Even Below the Threshold?
Many self-employed workers choose to register from day one, even when below the threshold. Why? To recover the GST and QST paid on business expenses (input tax credits). If you buy a $2,000 computer plus taxes, you could get nearly $300 back in taxes — but only if you are registered.
Tax Rates by Province (2026)
| Province | GST/HST | PST / QST | Total |
|---|---|---|---|
| Quebec | 5% (GST) | 9.975% (QST) | 14.975% |
| Ontario | 13% (HST) | — | 13% |
| British Columbia | 5% (GST) | 7% (PST) | 12% |
| Alberta | 5% (GST) | — | 5% |
| New Brunswick, N.S., N.L., P.E.I. | 15% (HST) | — | 15% |
| Manitoba | 5% (GST) | 7% (PST) | 12% |
| Saskatchewan | 5% (GST) | 6% (PST) | 11% |
How to Register for GST and QST
In Quebec, registration is a two-step process:
- CRA registration (GST): through the My Business Account portal, by phone (1-800-959-5525), or by form RC1.
- Revenu Québec registration (QST): through My Account for Businesses, online at the Revenu Québec website.
Good news: in Quebec, a single registration can cover both GST and QST, because Revenu Québec administers both taxes for Quebec businesses.
How to Calculate GST and QST on Your Invoices
Here is a concrete example. Suppose you invoice a consulting engagement for $1,000 to a Quebec client:
| Subtotal (fees) | $1,000.00 |
| GST (5%) | $50.00 |
| QST (9.975%) | $99.75 |
| Total invoiced | $1,149.75 |
Important: QST is calculated on the pre-GST subtotal, not on the taxed total. Many poorly configured software tools make this mistake, which can lead to discrepancies on your returns.
Mandatory Information on Your Invoices
Once registered, your invoices must include mandatory information, otherwise your clients will not be able to claim their own input tax credits:
- Your GST registration number (format: 123456789 RT0001)
- Your QST registration number (format: 1234567890 TQ0001)
- Invoice date and a unique sequential number
- A detailed description of the goods or services sold
- The amount of each tax, listed separately
- Your business name and address, and your client’s name and address
Input Tax Credits (ITCs and ITRs)
Here is where it gets interesting: as a registrant, you can claim the ITC (Input Tax Credit, for GST) and the ITR (Input Tax Refund, for QST) on all taxes paid as part of your business activities.
Examples of Expenses Eligible for a Credit
- Computer equipment and professional software
- Office rent and telecommunications fees
- Professional services (accountant, lawyer, consultant)
- Office supplies and materials
- Continuing education related to your profession
- Travel expenses and business meals (50% of taxes on meals)
Golden rule: keep all your purchase invoices. Without supporting documentation, no credit can be claimed in the event of a tax audit.
Return Filing Frequency
The frequency at which you must file your GST/QST returns depends on your annual taxable sales:
| Annual taxable sales | Mandatory frequency | Optional frequency |
|---|---|---|
| $1.5M or less | Annual | Quarterly or monthly |
| Between $1.5M and $6M | Quarterly | Monthly |
| Over $6M | Monthly | — |
Most self-employed workers file annually (by June 15, with payment due April 30) or quarterly (one month after the end of the quarter).
5 Common Mistakes to Avoid
- Forgetting to deregister when ceasing operations — you must file a final return even with no activity.
- Invoicing before obtaining your registration numbers — until you have your numbers, you cannot charge taxes.
- Mixing personal and business expenses — only expenses related to your business activity qualify for a credit.
- Not keeping supporting invoices — in an audit, no proof = no credit granted.
- Applying Quebec taxes to a client in another province — the taxes of the client’s province generally apply for services.
How InnoBooks Simplifies GST and QST Management
Managing GST and QST manually with an Excel spreadsheet is doable… but it is risky and time-consuming. InnoBooks automates the entire process for Quebec self-employed workers:
- ✅ Automatic calculation of GST and QST on every invoice, with the correct rates based on your client’s province
- ✅ Sequential numbering compliant with CRA and Revenu Québec requirements
- ✅ Input tax credit tracking from your expenses and photographed receipts
- ✅ Filing-ready tax reports: GST collected, QST collected, ITCs, ITRs, net taxes to remit
- ✅ Data export for your accountant or direct online filing
- ✅ Built-in Canadian compliance, with no complex configuration
Frequently Asked Questions About GST and QST
Do I have to charge GST and QST if my client is outside Canada?
No. Services rendered to clients outside Canada are generally zero-rated (taxed at 0%). You still have to report them on your return, but no tax is collected.
Can I recover GST/QST paid before registering?
In some cases, yes. You can claim credits for taxes paid on capital assets and inventory held at the time of your registration, but not on prior operating expenses.
What happens if I forget to file a return?
Penalties and interest apply automatically. The base penalty is 1% of the balance owing, plus 0.25% per month of delay (up to 12 months). Better to file a nil return than to file nothing.
What is the Quick Method?
The Quick Method of accounting allows certain small suppliers (annual sales < $400,000) to remit a reduced percentage of taxes collected instead of calculating ITCs/ITRs one by one. It can be advantageous if your taxable expenses are low, but requires a case-by-case analysis.
Summary
GST and QST are nothing mysterious, provided you get started with the right tools from day one. Register as soon as you approach the $30,000 threshold, invoice your clients correctly, keep every receipt to recover your input credits, and automate everything that can be automated.
Ready to let InnoBooks handle your taxes for you? Try InnoBooks free and focus on what you do best: your craft.
