Oct 20, 2025
Short Answer
If your business is based in Ontario (or anywhere outside Quebec), you cannot claim Quebec Sales Tax (QST) as an Input Tax Credit (ITC) on your GST/HST return. ITCs apply only to GST/HST paid on eligible business expenses, not to QST.
That said, how Quebec suppliers bill you matters - in some cases you won't be charged QST and in other cases, you can recover QST directly from Revenu Québec through an Input Tax Refund (ITR).
What Quebec Suppliers Usually Charge and When
Quebec has its own provincial tax authority (Revenu Québec), which manages both GST and QST within the province. Here’s how charges typically break down for Ontario-based businesses buying from Quebec suppliers:
- Services and goods delivered in Quebec → You’ll see both GST and QST on the invoice.
- Goods shipped outside Quebec (e.g., to Ontario) → Usually only GST/HST applies, no QST.
- Digital products or cross-border transactions (like software) → Sometimes suppliers mistakenly add QST even if you’re outside Quebec.
For clarity, always confirm the tax implications with your supplier. Many will ask for your business address to determine whether QST applies.
What You Can Claim
As an Ontario business, your ITC claims on your GST/HST return can cover:
- GST/HST paid on taxable sales inputs, zero-rated supplies (like basic groceries or exports), and expenses tied to real property transactions.
- Eligible business costs like credit card fees, bookkeeping questions, or even educational services if they’re taxable.
- Non-resident businesses selling into Canada can sometimes claim ITCs too, but only under specific Canadian Tax Compliance rules.
What you cannot claim here is QST. If you did pay QST by mistake, you may be able to apply for an Input Tax Refund (ITR) with Revenu Québec. This is different from the CRA’s ITC system and requires separate filing, detailed records, and often professional advice from your accountant.
FAQs
1. Can I just treat QST like HST and claim it back on my GST ITC?
No. QST is a provincial sales tax administered by Revenu Québec, not the Canada Revenue Agency (CRA).
2. What if my Quebec supplier charges QST even though I’m in Ontario?
You’ll need to request a refund from Revenu Québec. Keep detailed records—invoices, proof of shipment, payments (including direct debit or online banking records).
3. What about other provinces like British Columbia or Prince Edward Island?
Each province has its own rules—some use HST, others still use PST obligations. For example, BC has PST, and you can’t claim that as an ITC either.
4. When should I get help?
If you’re dealing with real property transactions, financial institutions, or cross-border transactions, you should probably get professional advice.
Bottom Line
- GST/HST ITCs → Yes, you can claim them in Ontario.
- QST → No, you can’t claim it as an ITC. But you may recover it through Revenu Québec with the right paperwork.
- Best practice → Ask suppliers to charge correctly upfront, keep detailed records, and talk to your accountant about your specific situation.
