Revenu Québec Infos

Online supplies of a “service of instructing” individuals in a course or of administering examinations in respect of a course may be GST- and QST-exempt if the following conditions are met:

• The service is not zero-rated.
• The service is provided by a government, a school authority, a vocational school, a public college or a university.
• The service is a service of instructing individuals in, or administering examinations in respect of, courses leading to certificates, diplomas, licences or similar documents, or classes or ratings in respect of licences, that attest to the competence of individuals to practise or perform a trade or vocation.
• The supplier has not filed form FP-2029-V, Election or Revocation of an Election by an Organization to Have the Supply of Its Courses, Examinations and Certificates Deemed Taxable.

In order to determine whether an online supply is exempt, you must first determine whether it is a supply of a service or of intangible personal property.

Service of instructing individuals

The following generally indicate that a supply constitutes a service of instructing individuals:

• The activity involves the provision of systematic instruction.
• The supplier monitors or supervises participants' progress or learning.
• The supplier assesses participants' progress during the course of the activity and provides ongoing support, feedback and guidance.
• The supplier may be available to assist participants with the subject matter at a time and location different from the time and place in which the activity occurs.
• The supplier assesses participants' competency upon completion of the activity by requiring them to formally demonstrate the knowledge they have acquired, and the activity may have to be repeated if the competency is not achieved.
• Participants are required to invest time and effort outside of the activity (for example, completing assignments or reading course material).
• The supplier may require successful completion of recognized prerequisites (for example, where participants must complete an introductory computer courses before taking intermediate computer courses).
• Participants may be required to successfully complete the activity before being permitted to participate in another activity.
• The activity is part of a series of activities leading to a formal recognition of skills.
• The activity may be part of a program that consists of a series of two or more related activities.
• The activity occurs at set intervals over an extended period of time (weeks or months).
• The activity does not include the provision of rights or if there is a provision of rights they are incidental to or part of a single supply of a service (for example, right to use library facilities).
• The subject of the activity is broad (for example, Canadian History).
• The supplier advertises or promotes the activity as instructing participants.
• The activity is promoted alongside others in a prospectus or calendar prepared by an educational institution.
• The promotional material indicates that the activity is part of a broader program which may lead to a formal recognition of skills.
• The promotional material is aimed at individuals who possess the prerequisites for participating in the activity.

Where none of the above apply, the online supply of the service is not a supply of a “service of instructing”.

Intangible personal property

Conversely, the following generally indicate that a supply is not a supply of a service of instructing but rather a supply of intangible personal property (for example, admission to a workshop or seminar):

• There is little individualized interaction between the supplier and participants.
• Attendance at the activity is sufficient for participants to receive evidence of successful or satisfactory completion of the activity.
• The main purpose of the activity is to provide information to participants or to facilitate the exchange of information between them.
• The subject of the activity is narrowly focused.
• Each activity is discrete with no formal prerequisites for attendance.
• Participation in the activity is not a prerequisite for participation in another activity.
• The activity is promoted as a stand-alone activity.
• The activity is promoted as a workshop or seminar that is open to the general public.
• The activity occurs over a few hours, a day or a few consecutive days.

For more information, refer to Technical Information Bulletin B-090, GST/HST and Electronic Commerce.

Incontinence products that are specially designed for use by an individual with a disability are zero-rated under the GST and the QST systems. Incontinence products include underpads, underwear, and chair and other seat covers (for example, a seat cover for a lift chair, recliner, wheelchair, car or scooter) that have certain special design features.

Products that are specially designed for use by an individual with a disability

All of an incontinence product's design features are considered in order to determine whether the product is specially designed to help an individual with a disability cope with incontinence. How the incontinence product is marketed is also considered, though this is not the predominant factor for making the determination.

An incontinence product is considered to be specially designed for use by an individual with a disability if the product is designed to absorb leakages, reduce odours, control bacteria, maintain dryness and protect against skin irritation. As such, the product must be designed using high-absorbency materials and typically have a sealed edge to ensure leakage protection. The fact that a product is reusable or disposable, or that it can be used by an individual who does not have a disability, is not sufficient to change the characteristics of the product so that it is no longer considered to be an incontinence product that is specially designed for use by an individual with a disability.

Other products

Products such as waterproof sheets, chair pads and mattress covers, on the other hand, are not considered to be specially designed for use by an individual with a disability, and are therefore subject to GST and QST.

Children's diapers that are designed for babies or children are also not considered to be specially designed for use by an individual with a disability. Children's diapers include cloth or disposable diapers, diaper inserts or liners, training pants, and rubber pants designed for use with any of these items. These products are not subject to QST (because they are zero-rated under the QST system), but are subject to GST.

Incontinence products that are specially designed for use by an individual with a disability are zero-rated under the GST and the QST systems. Incontinence products include underpads, underwear, and chair and other seat covers (for example, a seat cover for a lift chair, recliner, wheelchair, car or scooter) that have certain special design features.

Products that are specially designed for use by an individual with a disability

All of an incontinence product's design features are considered in order to determine whether the product is specially designed to help an individual with a disability cope with incontinence. How the incontinence product is marketed is also considered, though this is not the predominant factor for making the determination.

An incontinence product is considered to be specially designed for use by an individual with a disability if the product is designed to absorb leakages, reduce odours, control bacteria, maintain dryness and protect against skin irritation. As such, the product must be designed using high-absorbency materials and typically have a sealed edge to ensure leakage protection. The fact that a product is reusable or disposable, or that it can be used by an individual who does not have a disability, is not sufficient to change the characteristics of the product so that it is no longer considered to be an incontinence product that is specially designed for use by an individual with a disability.

Other products

Products such as waterproof sheets, chair pads and mattress covers, on the other hand, are not considered to be specially designed for use by an individual with a disability, and are therefore subject to GST and QST.

Children's diapers that are designed for babies or children are also not considered to be specially designed for use by an individual with a disability. Children's diapers include cloth or disposable diapers, diaper inserts or liners, training pants, and rubber pants designed for use with any of these items. These products are not subject to QST (because they are zero-rated under the QST system), but are subject to GST.

Incontinence products that are specially designed for use by an individual with a disability are zero-rated under the GST and the QST systems. Incontinence products include underpads, underwear, and chair and other seat covers (for example, a seat cover for a lift chair, recliner, wheelchair, car or scooter) that have certain special design features.

Products that are specially designed for use by an individual with a disability

All of an incontinence product's design features are considered in order to determine whether the product is specially designed to help an individual with a disability cope with incontinence. How the incontinence product is marketed is also considered, though this is not the predominant factor for making the determination.

An incontinence product is considered to be specially designed for use by an individual with a disability if the product is designed to absorb leakages, reduce odours, control bacteria, maintain dryness and protect against skin irritation. As such, the product must be designed using high-absorbency materials and typically have a sealed edge to ensure leakage protection. The fact that a product is reusable or disposable, or that it can be used by an individual who does not have a disability, is not sufficient to change the characteristics of the product so that it is no longer considered to be an incontinence product that is specially designed for use by an individual with a disability.

Other products

Products such as waterproof sheets, chair pads and mattress covers, on the other hand, are not considered to be specially designed for use by an individual with a disability, and are therefore subject to GST and QST.

Children's diapers that are designed for babies or children are also not considered to be specially designed for use by an individual with a disability. Children's diapers include cloth or disposable diapers, diaper inserts or liners, training pants, and rubber pants designed for use with any of these items. These products are not subject to QST (because they are zero-rated under the QST system), but are subject to GST.

Incontinence products that are specially designed for use by an individual with a disability are zero-rated under the GST and the QST systems. Incontinence products include underpads, underwear, and chair and other seat covers (for example, a seat cover for a lift chair, recliner, wheelchair, car or scooter) that have certain special design features. 

Products that are specially designed for use by an individual with a disability

All of an incontinence product's design features are considered in order to determine whether the product is specially designed to help an individual with a disability cope with incontinence. How the incontinence product is marketed is also considered, though this is not the predominant factor for making the determination. 

An incontinence product is considered to be specially designed for use by an individual with a disability if the product is designed to absorb leakages, reduce odours, control bacteria, maintain dryness and protect against skin irritation. As such, the product must be designed using high-absorbency materials and typically have a sealed edge to ensure leakage protection. The fact that a product is reusable or disposable, or that it can be used by an individual who does not have a disability, is not sufficient to change the characteristics of the product so that it is no longer considered to be an incontinence product that is specially designed for use by an individual with a disability.

Other products

Products such as waterproof sheets, chair pads and mattress covers, on the other hand, are not considered to be specially designed for use by an individual with a disability, and are therefore subject to GST and QST. 

Children's diapers that are designed for babies or children are also not considered to be specially designed for use by an individual with a disability. Children's diapers include cloth or disposable diapers, diaper inserts or liners, training pants, and rubber pants designed for use with any of these items. These products are not subject to QST (because they are zero-rated under the QST system), but are subject to GST.

Property from outside Canada

As a rule, property from outside Canada brought into Québec is taxable under the QST and GST/HST systems. The QST and GST are generally collected by the Canada Border Services Agency when the property is released from customs in Québec.

However, QST registrants are not required to pay the QST if they would have been entitled to an input tax refund (ITR) had they paid the tax. 

Property from another Canadian province

As a rule, property brought into Québec from another Canadian province is taxable under the QST system.

Consequently, any person who brings (or causes to be brought) into Québec property from another Canadian province is generally required to pay and declare the QST in respect of the bringing in.

However, QST registrants are not required to pay the QST if they would have been entitled to an ITR had they paid the tax.

Road vehicles brought into Québec

Where the property brought into Québec, either from another Canadian province or from outside Canada, is a road vehicle that must be registered under the Highway Safety Code, the QST payable in respect of the bringing in is generally collected by the Société de l'assurance automobile du Québec upon vehicle registration.

Reporting and paying the QST as a person that is not a QST registrant

Any person that is not a QST registrant and that must report and pay the QST on property brought into Québec must file Special-Purpose Returns (form FP-505-V) and the QST Return Respecting Property or a Service Brought into Québec by a Person That Is Not a QST Registrant (form FP-505.D.D-V).

Note

See Imports of Property for examples of non-taxable property brought into Québec.

Property from outside Canada

As a rule, property from outside Canada brought into Québec is taxable under the QST and GST/HST systems. The QST and GST are generally collected by the Canada Border Services Agency when the property is released from customs in Québec.

However, QST registrants are not required to pay the QST if they would have been entitled to an input tax refund (ITR) had they paid the tax. 

Property from another Canadian province

As a rule, property brought into Québec from another Canadian province is taxable under the QST system.

Consequently, any person who brings (or causes to be brought) into Québec property from another Canadian province is generally required to pay and declare the QST in respect of the bringing in.

However, QST registrants are not required to pay the QST if they would have been entitled to an ITR had they paid the tax.

Road vehicles brought into Québec

Where the property brought into Québec, either from another Canadian province or from outside Canada, is a road vehicle that must be registered under the Highway Safety Code, the QST payable in respect of the bringing in is generally collected by the Société de l'assurance automobile du Québec upon vehicle registration.

Reporting and paying the QST as a person that is not a QST registrant

Any person that is not a QST registrant and that must report and pay the QST on property brought into Québec must file Special-Purpose Returns (form FP-505-V) and the QST Return Respecting Property or a Service Brought into Québec by a Person That Is Not a QST Registrant (form FP-505.D.D-V).

Note

See Imports of Property for examples of non-taxable property brought into Québec.

Property from outside Canada

As a rule, property from outside Canada brought into Québec is taxable under the QST and GST/HST systems. The QST and GST are generally collected by the Canada Border Services Agency when the property is released from customs in Québec.

However, QST registrants are not required to pay the QST if they would have been entitled to an input tax refund (ITR) had they paid the tax. 

Property from another Canadian province

As a rule, property brought into Québec from another Canadian province is taxable under the QST system.

Consequently, any person who brings (or causes to be brought) into Québec property from another Canadian province is generally required to pay and declare the QST in respect of the bringing in.

However, QST registrants are not required to pay the QST if they would have been entitled to an ITR had they paid the tax.

Road vehicles brought into Québec

Where the property brought into Québec, either from another Canadian province or from outside Canada, is a road vehicle that must be registered under the Highway Safety Code, the QST payable in respect of the bringing in is generally collected by the Société de l'assurance automobile du Québec upon vehicle registration.

Reporting and paying the QST as a person that is not a QST registrant

Any person that is not a QST registrant and that must report and pay the QST on property brought into Québec must file Special-Purpose Returns (form FP-505-V) and the QST Return Respecting Property or a Service Brought into Québec by a Person That Is Not a QST Registrant (form FP-505.D.D-V).

Note

See Imports of Property for examples of non-taxable property brought into Québec.

Property from outside Canada

As a rule, property from outside Canada brought into Québec is taxable under the QST and GST/HST systems. The QST and GST are generally collected by the Canada Border Services Agency when the property is released from customs in Québec.

However, QST registrants are not required to pay the QST if they would have been entitled to an input tax refund (ITR) had they paid the tax.    

Property from another Canadian province

As a rule, property brought into Québec from another Canadian province is taxable under the QST system.

Consequently, any person who brings (or causes to be brought) into Québec property from another Canadian province is generally required to pay and declare the QST in respect of the bringing in.

However, QST registrants are not required to pay the QST if they would have been entitled to an ITR had they paid the tax.

Road vehicles brought into Québec

Where the property brought into Québec, either from another Canadian province or from outside Canada, is a road vehicle that must be registered under the Highway Safety Code, the QST payable in respect of the bringing in is generally collected by the Société de l'assurance automobile du Québec upon vehicle registration.

Reporting and paying the QST as a person that is not a QST registrant

Any person that is not a QST registrant and that must report and pay the QST on property brought into Québec must file Special-Purpose Returns (form FP-505-V) and the QST Return Respecting Property or a Service Brought into Québec by a Person That Is Not a QST Registrant (form FP-505.D.D-V).

Note

See Imports of Property for examples of non-taxable property brought into Québec.

Admission to a place of amusement is GST- and QST-exempt when sold by a government or public body for $1 or less.

For GST and QST purposes, the term “admission” means a right of entry or access to, or attendance at, a place of amusement, a seminar, an activity or an event.

Moreover, the term “place of amusement” refers to:

• any premises or place, whether or not enclosed, at or in any part of which is staged or held:
  • a slide show, film, sound and light or similar presentation,
  • an artistic, literary, musical, theatrical or other exhibition or performance,
  • a circus, fair, menagerie, rodeo or similar event, or 
  • a race, game of chance, athletic contest or other contest or game;
• a museum, historical site, zoo, wildlife or other park, or a place where bets are placed; and 
• any place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation.  

Regardless of how or how often it is usually used, a location can be considered a “place of amusement” when it is the site of an activity. For example, if a public institution has a gymnasium that it uses for physical education classes and, once a year, it uses the gymnasium to hold an arts and crafts fair, the gymnasium is considered a place of amusement during the fair.

Other types of admission may also be tax-exempt. Examples include:

• admission to something other than a place of amusement (for example, to a conference) supplied by a charity;
• admission to a fundraising activity (for example, a dinner) supplied by a public institution, provided part of the price paid constitutes a donation and the institution can issue a receipt for income tax purposes.

For more examples, click Admission.

Example 1

A non-profit organization in Trois-Rivières is holding free writing workshops for aspiring authors, with a bouncy castle onsite for the participants' children at a cost of $1 per child.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the bouncy castle constitutes a place of amusement for tax purposes. Given that the price of admission does not exceed $1, the supply is GST- and QST-exempt.

Example 2

From May to October, a GST- and QST-registrant charity in Québec City provides afternoon tours of a local church with unique architecture. Tour admission costs $5.

A church does not fit the definition of a “place of amusement” for tax purposes. Therefore, admission to the tour is tax-exempt, since it is not admission to a place of amusement and it is supplied by a charity.

Example 3

The same charity also holds evening concerts in the church during the same period. Tickets cost $10.

Given that, during the concerts, the church constitutes an enclosed space in which a musical performance takes place, it is considered a place of amusement. Moreover, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 4

A GST- and QST-registrant charity in Saguenay charges $10 for admission to its museum.

For tax purposes, a museum is a place of amusement. Therefore, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 5

A GST- and QST-registrant charity in Sherbrooke is organizing a skating activity. Admission fees vary by age: $0.50 for children aged 2 to 5, $1 for children aged 6 to 12, and $2.50 for participants aged 13 or older.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the skating rink constitutes a place of amusement for tax purposes. Even though admission fees are $1 or less in some cases, the fact that the fee for one age bracket exceeds $1 (and that no other exemptions apply) means that the GST and QST must be charged on all admission fees regardless of price.

Admission to a place of amusement is GST- and QST-exempt when sold by a government or public body for $1 or less.

For GST and QST purposes, the term “admission” means a right of entry or access to, or attendance at, a place of amusement, a seminar, an activity or an event.

Moreover, the term “place of amusement” refers to:

• any premises or place, whether or not enclosed, at or in any part of which is staged or held:
  • a slide show, film, sound and light or similar presentation,
  • an artistic, literary, musical, theatrical or other exhibition or performance,
  • a circus, fair, menagerie, rodeo or similar event, or 
  • a race, game of chance, athletic contest or other contest or game;
• a museum, historical site, zoo, wildlife or other park, or a place where bets are placed; and 
• any place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation.  

Regardless of how or how often it is usually used, a location can be considered a “place of amusement” when it is the site of an activity. For example, if a public institution has a gymnasium that it uses for physical education classes and, once a year, it uses the gymnasium to hold an arts and crafts fair, the gymnasium is considered a place of amusement during the fair.

Other types of admission may also be tax-exempt. Examples include:

• admission to something other than a place of amusement (for example, to a conference) supplied by a charity;
• admission to a fundraising activity (for example, a dinner) supplied by a public institution, provided part of the price paid constitutes a donation and the institution can issue a receipt for income tax purposes.

For more examples, click Admission.

Example 1

A non-profit organization in Trois-Rivières is holding free writing workshops for aspiring authors, with a bouncy castle onsite for the participants' children at a cost of $1 per child.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the bouncy castle constitutes a place of amusement for tax purposes. Given that the price of admission does not exceed $1, the supply is GST- and QST-exempt.

Example 2

From May to October, a GST- and QST-registrant charity in Québec City provides afternoon tours of a local church with unique architecture. Tour admission costs $5.

A church does not fit the definition of a “place of amusement” for tax purposes. Therefore, admission to the tour is tax-exempt, since it is not admission to a place of amusement and it is supplied by a charity.

Example 3

The same charity also holds evening concerts in the church during the same period. Tickets cost $10.

Given that, during the concerts, the church constitutes an enclosed space in which a musical performance takes place, it is considered a place of amusement. Moreover, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 4

A GST- and QST-registrant charity in Saguenay charges $10 for admission to its museum.

For tax purposes, a museum is a place of amusement. Therefore, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 5

A GST- and QST-registrant charity in Sherbrooke is organizing a skating activity. Admission fees vary by age: $0.50 for children aged 2 to 5, $1 for children aged 6 to 12, and $2.50 for participants aged 13 or older.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the skating rink constitutes a place of amusement for tax purposes. Even though admission fees are $1 or less in some cases, the fact that the fee for one age bracket exceeds $1 (and that no other exemptions apply) means that the GST and QST must be charged on all admission fees regardless of price.

Admission to a place of amusement is GST- and QST-exempt when sold by a government or public body for $1 or less.

For GST and QST purposes, the term “admission” means a right of entry or access to, or attendance at, a place of amusement, a seminar, an activity or an event.

Moreover, the term “place of amusement” refers to:

• any premises or place, whether or not enclosed, at or in any part of which is staged or held:
  • a slide show, film, sound and light or similar presentation,
  • an artistic, literary, musical, theatrical or other exhibition or performance,
  • a circus, fair, menagerie, rodeo or similar event, or 
  • a race, game of chance, athletic contest or other contest or game;
• a museum, historical site, zoo, wildlife or other park, or a place where bets are placed; and 
• any place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation.  

Regardless of how or how often it is usually used, a location can be considered a “place of amusement” when it is the site of an activity. For example, if a public institution has a gymnasium that it uses for physical education classes and, once a year, it uses the gymnasium to hold an arts and crafts fair, the gymnasium is considered a place of amusement during the fair.

Other types of admission may also be tax-exempt. Examples include:

• admission to something other than a place of amusement (for example, to a conference) supplied by a charity;
• admission to a fundraising activity (for example, a dinner) supplied by a public institution, provided part of the price paid constitutes a donation and the institution can issue a receipt for income tax purposes.

For more examples, click Admission.

Example 1

A non-profit organization in Trois-Rivières is holding free writing workshops for aspiring authors, with a bouncy castle onsite for the participants' children at a cost of $1 per child.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the bouncy castle constitutes a place of amusement for tax purposes. Given that the price of admission does not exceed $1, the supply is GST- and QST-exempt.

Example 2

From May to October, a GST- and QST-registrant charity in Québec City provides afternoon tours of a local church with unique architecture. Tour admission costs $5.

A church does not fit the definition of a “place of amusement” for tax purposes. Therefore, admission to the tour is tax-exempt, since it is not admission to a place of amusement and it is supplied by a charity.

Example 3

The same charity also holds evening concerts in the church during the same period. Tickets cost $10.

Given that, during the concerts, the church constitutes an enclosed space in which a musical performance takes place, it is considered a place of amusement. Moreover, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 4

A GST- and QST-registrant charity in Saguenay charges $10 for admission to its museum.

For tax purposes, a museum is a place of amusement. Therefore, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 5

A GST- and QST-registrant charity in Sherbrooke is organizing a skating activity. Admission fees vary by age: $0.50 for children aged 2 to 5, $1 for children aged 6 to 12, and $2.50 for participants aged 13 or older.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the skating rink constitutes a place of amusement for tax purposes. Even though admission fees are $1 or less in some cases, the fact that the fee for one age bracket exceeds $1 (and that no other exemptions apply) means that the GST and QST must be charged on all admission fees regardless of price.

Admission to a place of amusement is GST- and QST-exempt when sold by a government or public body for $1 or less.

For GST and QST purposes, the term “admission” means a right of entry or access to, or attendance at, a place of amusement, a seminar, an activity or an event.

Moreover, the term “place of amusement” refers to:

• any premises or place, whether or not enclosed, at or in any part of which is staged or held:
  • a slide show, film, sound and light or similar presentation,
  • an artistic, literary, musical, theatrical or other exhibition or performance,
  • a circus, fair, menagerie, rodeo or similar event, or 
  • a race, game of chance, athletic contest or other contest or game;
• a museum, historical site, zoo, wildlife or other park, or a place where bets are placed; and 
• any place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation.  

Regardless of how or how often it is usually used, a location can be considered a “place of amusement” when it is the site of an activity. For example, if a public institution (This link will open a new window) has a gymnasium that it uses for physical education classes and, once a year, it uses the gymnasium to hold an arts and crafts fair, the gymnasium is considered a place of amusement during the fair.  

Other types of admission may also be tax-exempt. Examples include:

• admission to something other than a place of amusement (for example, to a conference) supplied by a charity;
• admission to a fundraising activity (for example, a dinner) supplied by a public institution, provided part of the price paid constitutes a donation and the institution can issue a receipt for income tax purposes.

For more examples, click Admission.

Example 1

A non-profit organization in Trois-Rivières is holding free writing workshops for aspiring authors, with a bouncy castle onsite for the participants' children at a cost of $1 per child. 

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the bouncy castle constitutes a place of amusement for tax purposes. Given that the price of admission does not exceed $1, the supply is GST- and QST-exempt.

Example 2

From May to October, a GST- and QST-registrant charity in Québec City provides afternoon tours of a local church with unique architecture. Tour admission costs $5.

A church does not fit the definition of a “place of amusement” for tax purposes. Therefore, admission to the tour is tax-exempt, since it is not admission to a place of amusement and it is supplied by a charity.

Example 3

The same charity also holds evening concerts in the church during the same period. Tickets cost $10.

Given that, during the concerts, the church constitutes an enclosed space in which a musical performance takes place, it is considered a place of amusement. Moreover, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 4

A GST- and QST-registrant charity in Saguenay charges $10 for admission to its museum.

For tax purposes, a museum is a place of amusement. Therefore, as the cost of admission is greater than $1 and no other exemptions apply, the GST and QST must be charged.

Example 5

A GST- and QST-registrant charity in Sherbrooke is organizing a skating activity. Admission fees vary by age: $0.50 for children aged 2 to 5, $1 for children aged 6 to 12, and $2.50 for participants aged 13 or older.

As a place, structure, apparatus, machine or device whose purpose is to provide amusement or recreation, the skating rink constitutes a place of amusement for tax purposes. Even though admission fees are $1 or less in some cases, the fact that the fee for one age bracket exceeds $1 (and that no other exemptions apply) means that the GST and QST must be charged on all admission fees regardless of price.

Corporate income tax rates will change through a reduction of the general tax rate, adjustment of the small business deduction (SBD) and a refocusing of the SBD on corporations in the primary and manufacturing sectors, and the extension of the additional deduction for small and medium-sized manufacturing businesses to small and medium-sized businesses (SMBs) in the primary and manufacturing sectors.

General tax rate

From 2017 to 2020, the general tax rate will be gradually reduced by 0.4 of a percentage point. The rate reductions will take effect on January 1 of each of the aforementioned years.

The general corporate tax rate will be reduced from the current rate of 11.9% to 11.8% in 2017, 11.7% in 2018, 11.6 % in 2019 and, finally, 11.5% in 2020.

SBD

Changes will be made to the SBD to adjust the rate of the deduction in view of the reduction of the general tax rate and to refocus the SBD on certain types of corporations.

The minimum income tax rate for small corporations will be maintained at all times at 8%. For all practical purposes, the current SBD rate of 3.9% will be gradually reduced by 0.4 of a percentage point in the same manner and within the same time frame as the general tax rate is to be reduced, thereby maintaining the minimum rate at 8%.

Furthermore, only some of the corporations that currently qualify for the SBD will be able to continue to claim it, in whole or in part. They include, for a taxation year,

• any corporation that employs more than three full-time employees in its business throughout the year or that would usually have used the services of more than three full-time employees had financial, administrative, maintenance, management or other similar services not been provided to the corporation in the year by a corporation associated with it; and 
• any corporation in the primary or manufacturing sector.

A corporation that, for a taxation year, meets the requirement by having the minimum number of such employees will be able to claim the SBD at the maximum rate for that taxation year.

However, a corporation in the primary or manufacturing sector that fails to meet the requirement by not having the minimum number of such employees will nonetheless be able to claim the SBD according to the proportion of its activities in the primary or manufacturing sector. Primary sector activities are those attributable to agriculture, forestry, fishing, hunting, mining, quarrying, and oil and gas extraction, whereas manufacturing sector activities are those that constitute manufacturing and processing activities.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and processing sector, for a particular taxation year, is 50% or more will be able to claim the SBD at the maximum rate for that taxation year.

If the proportion of such activities for a particular taxation year is between 50% and 25%, a corporation in the primary or manufacturing sector will be able to claim, for that taxation year, the SBD at a rate that is reduced linearly.

The changes relating to the refocusing of the SBD on corporations in the primary and manufacturing sectors will apply to taxation years beginning after December 31, 2016.

Additional deduction for SMBs

Changes will be made to the additional deduction for SMBs so that it becomes the additional deduction for SMBs in the primary and manufacturing sectors. The activities that are considered primary sector activities or manufacturing sector activities for purposes of the SBD are also considered such activities for purposes of the additional deduction for SMBs in the primary and manufacturing sectors.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and transformation sector, for a particular taxation year, is 50% or more will be able to claim the additional deduction for SMBs in the primary and manufacturing sectors at the rate of 4%.

If the proportion of such activities for a particular taxation year is between 50% and 25%, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that a corporation may claim will be reduced linearly.

These changes will apply to taxation years beginning after December 31, 2016.

For more information, see pages A.37 to A.44 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

Corporate income tax rates will change through a reduction of the general tax rate, adjustment of the small business deduction (SBD) and a refocusing of the SBD on corporations in the primary and manufacturing sectors, and the extension of the additional deduction for small and medium-sized manufacturing businesses to small and medium-sized businesses (SMBs) in the primary and manufacturing sectors.

General tax rate

From 2017 to 2020, the general tax rate will be gradually reduced by 0.4 of a percentage point. The rate reductions will take effect on January 1 of each of the aforementioned years.

The general corporate tax rate will be reduced from the current rate of 11.9% to 11.8% in 2017, 11.7% in 2018, 11.6 % in 2019 and, finally, 11.5% in 2020.

SBD

Changes will be made to the SBD to adjust the rate of the deduction in view of the reduction of the general tax rate and to refocus the SBD on certain types of corporations.

The minimum income tax rate for small corporations will be maintained at all times at 8%. For all practical purposes, the current SBD rate of 3.9% will be gradually reduced by 0.4 of a percentage point in the same manner and within the same time frame as the general tax rate is to be reduced, thereby maintaining the minimum rate at 8%.

Furthermore, only some of the corporations that currently qualify for the SBD will be able to continue to claim it, in whole or in part. They include, for a taxation year,

• any corporation that employs more than three full-time employees in its business throughout the year or that would usually have used the services of more than three full-time employees had financial, administrative, maintenance, management or other similar services not been provided to the corporation in the year by a corporation associated with it; and 
• any corporation in the primary or manufacturing sector.

A corporation that, for a taxation year, meets the requirement by having the minimum number of such employees will be able to claim the SBD at the maximum rate for that taxation year.

However, a corporation in the primary or manufacturing sector that fails to meet the requirement by not having the minimum number of such employees will nonetheless be able to claim the SBD according to the proportion of its activities in the primary or manufacturing sector. Primary sector activities are those attributable to agriculture, forestry, fishing, hunting, mining, quarrying, and oil and gas extraction, whereas manufacturing sector activities are those that constitute manufacturing and processing activities.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and processing sector, for a particular taxation year, is 50% or more will be able to claim the SBD at the maximum rate for that taxation year.

If the proportion of such activities for a particular taxation year is between 50% and 25%, a corporation in the primary or manufacturing sector will be able to claim, for that taxation year, the SBD at a rate that is reduced linearly.

The changes relating to the refocusing of the SBD on corporations in the primary and manufacturing sectors will apply to taxation years beginning after December 31, 2016.

Additional deduction for SMBs

Changes will be made to the additional deduction for SMBs so that it becomes the additional deduction for SMBs in the primary and manufacturing sectors. The activities that are considered primary sector activities or manufacturing sector activities for purposes of the SBD are also considered such activities for purposes of the additional deduction for SMBs in the primary and manufacturing sectors.

A corporation in the primary or manufacturing sector whose proportion of activities in the primary sector or in the manufacturing and transformation sector, for a particular taxation year, is 50% or more will be able to claim the additional deduction for SMBs in the primary and manufacturing sectors at the rate of 4%.

If the proportion of such activities for a particular taxation year is between 50% and 25%, the rate of the additional deduction for SMBs in the primary and manufacturing sectors that a corporation may claim will be reduced linearly.

These changes will apply to taxation years beginning after December 31, 2016.

For more information, see pages A.37 to A.44 of the document entitled Additional Information 2015-2016 (PDF – 1.96 MB) published by the Ministère des Finances.

The health contribution will be phased out beginning in 2017 and will be completely eliminated by 2019.

Low-income tax payers will no longer have to pay the health contribution as of 2017, since the income threshold at which it becomes payable will be set at more than $40,000.

The maximum amount payable for middle-income tax payers will decline to $125 in 2017 and $80 in 2018, and for high-income tax payers, it will decline to $800 in 2017 and $600 in 2018.

For more information, see page A.5 of the Ministère des Finances document entitled Additional Information 2015-2016 (PDF – 1.96 Mb).

The health contribution will be phased out beginning in 2017 and will be completely eliminated by 2019.

Low-income tax payers will no longer have to pay the health contribution as of 2017, since the income threshold at which it becomes payable will be set at more than $40,000.

The maximum amount payable for middle-income tax payers will decline to $125 in 2017 and $80 in 2018, and for high-income tax payers, it will decline to $800 in 2017 and $600 in 2018.

For more information, see page A.5 of the Ministère des Finances document entitled Additional Information 2015-2016 (PDF – 1.96 Mb).

The rate of the tax on lodging applicable in the Montréal tourism region is maintained at 3.5% for the period from February 1, 2015, to January 31, 2025.

For more information, consult Information Bulletin 2014-12 (PDF – 336 KB), published by the Ministère des Finances on December 19, 2014.

The rate of the tax on lodging applicable in the Montréal tourism region is maintained at 3.5% for the period from February 1, 2015, to January 31, 2025.

For more information, consult Information Bulletin 2014-12 (PDF – 336 KB), published by the Ministère des Finances on December 19, 2014.

The transitional measures in place to ease into the new rate of the tax on insurance premiums applicable to the payment of automobile insurance premiums have been updated to grant additional time to persons with a monthly reporting period.

For more information, see New Tax Rate – Tax on Insurance Premiums.