Revenu Québec Infos

The non-refundable tax credit for large cultural donations was created in 2013. It corresponds to 25% of a large cultural donation made by an individual (other than a trust) for the year. Though it can be claimed in addition to the tax credit for charitable donations and other gifts, it can only be claimed for one donation.

Given the increase in the number of large cultural donations since the tax credit was introduced, it will be extended five years. The tax legislation will therefore be amended to allow individuals to claim the non-refundable tax credit for a large cultural donation made before January 1, 2023.

For more information, see pages A.42 and A.43 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and 
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and 
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

As a rule, Revenu Québec must receive annual GST and QST returns and remittances no later than three months after the end of the reporting period.

The time limit changes, however, for individuals who are GST and QST registrants and

• who earn business income (other than property income) for income tax purposes;
• who have an annual reporting period; and 
• whose fiscal year ends on December 31.

Individuals in the situation described above have until June 15 of the following year to file their returns.

Note, however, that they must make remittances of any GST and QST payable no later than April 30.

The RénoVert tax credit has been extended for one year. This means you now have until March 31, 2019, to sign a renovation contract with a qualified contractor.

Renovation contracts entered into after March 31, 2018, but before April 1, 2019, may relate to any of the eco-friendly renovation work currently recognized for the purposes of the RénoVert tax credit—except for the construction, renovation, modification or rebuilding of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water, since a refundable tax credit for the upgrading of residential waste water treatment systems was created for such work on April 1, 2017.

For more information, see pages A.19 to A.21 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The RénoVert tax credit has been extended for one year. This means you now have until March 31, 2019, to sign a renovation contract with a qualified contractor.

Renovation contracts entered into after March 31, 2018, but before April 1, 2019, may relate to any of the eco-friendly renovation work currently recognized for the purposes of the RénoVert tax credit—except for the construction, renovation, modification or rebuilding of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water, since a refundable tax credit for the upgrading of residential waste water treatment systems was created for such work on April 1, 2017.

For more information, see pages A.19 to A.21 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

The RénoVert tax credit has been extended for one year. This means you now have until March 31, 2019, to sign a renovation contract with a qualified contractor.

Renovation contracts entered into after March 31, 2018, but before April 1, 2019, may relate to any of the eco-friendly renovation work currently recognized for the purposes of the RénoVert tax credit—except for the construction, renovation, modification or rebuilding of a system for the discharge, collection and disposal of waste water, toilet effluents or grey water, since a refundable tax credit for the upgrading of residential waste water treatment systems was created for such work on April 1, 2017.

For more information, see pages A.19 to A.21 of the Additional Information 2018-2019 (PDF – 3.73 MB) published by the Ministère des Finances.

Mandatory QST registration for suppliers outside Québec

As part of the 2018-2019 Budget Speech delivered on March 27, 2018, the Minister of Finance announced the implementation of a new QST registration system to collect QST from suppliers that are non-residents of Québec and thereby ensure tax fairness.

Foreign suppliers (suppliers outside Canada) will have until January 1, 2019, to register for the QST using this new system, while Canadian suppliers (suppliers outside Québec) will have until September 1, 2019. Note that registration will also be mandatory for certain digital platforms acting as an intermediary between suppliers and consumers.

Foreign suppliers: mandatory registration before January 1, 2019

This deadline applies to foreign suppliers:

• with no physical or significant presence in Québec;
• that are not already registered for the QST;
• that make over $30,000 in taxable sales to consumers in Québec; and
• that supply services and incorporeal moveable property in Québec.

Canadian suppliers: mandatory registration before September 1, 2019

This deadline applies to Canadian suppliers:

• with no physical or significant presence in Québec;
• that are not already registered for the QST;
• that make over $30,000 in taxable sales to consumers in Québec;
• that supply services and incorporeal moveable property in Québec; and
• that supply corporeal movable property in Québec.

Application of the new measure

Suppliers that have questions concerning their registration can contact us. They must register and start collecting and remitting the applicable QST on their taxable sales made to Québec residents that are not QST registrants by the above deadlines.

This measure is an important step towards ensuring tax fairness between non-resident suppliers of Québec and local businesses, which are required to collect and remit the QST.

Details of the new registration system will be available on our website soon.  In the meantime, see pages A.5 to A.14 of the Additional Information 2018-2019 (PDF – 3,73 MB) published by the Ministère des Finances.

Mandatory QST registration for suppliers outside Québec

As part of the 2018-2019 Budget Speech delivered on March 27, 2018, the Minister of Finance announced the implementation of a new QST registration system to collect QST from suppliers that are non-residents of Québec and thereby ensure tax fairness.

Foreign suppliers (suppliers outside Canada) will have until January 1, 2019, to register for the QST using this new system, while Canadian suppliers (suppliers outside Québec) will have until September 1, 2019. Note that registration will also be mandatory for certain digital platforms acting as an intermediary between suppliers and consumers.

Foreign suppliers: mandatory registration before January 1, 2019

This deadline applies to foreign suppliers:

• with no physical or significant presence in Québec;
• that are not already registered for the QST;
• that make over $30,000 in taxable sales to consumers in Québec; and
• that supply services and incorporeal moveable property in Québec.

Canadian suppliers: mandatory registration before September 1, 2019

This deadline applies to Canadian suppliers:

• with no physical or significant presence in Québec;
• that are not already registered for the QST;
• that make over $30,000 in taxable sales to consumers in Québec;
• that supply services and incorporeal moveable property in Québec; and
• that supply corporeal movable property in Québec.

Application of the new measure

Suppliers that have questions concerning their registration can contact us. They must register and start collecting and remitting the applicable QST on their taxable sales made to Québec residents that are not QST registrants by the above deadlines.

This measure is an important step towards ensuring tax fairness between non-resident suppliers of Québec and local businesses, which are required to collect and remit the QST.

Details of the new registration system will be available on our website soon.  In the meantime, see pages A.5 to A.14 of the Additional Information 2018-2019 (PDF – 3,73 MB) published by the Ministère des Finances.

As of 2018, the rate applicable to variable E (the value of personal tax credits in guide TP-1015.F-V, Formulas to Calculate Source Deductions and Contributions) is reduced from 20% to 15% (not from 16% to 15%).

In the Budget Speech of March 28, 2017, changes to the rates and amounts used to calculate personal tax credits for 2017, including the rate reduction from 20% to 16%, were announced. However, the Ministère des Finances stated that these changes would not apply to the calculation of income deducted at source for 2017.

Therefore, the rate applicable to variable E in the formulas used to calculate source deductions of Québec income tax was 20% for all of 2017. This is despite reductions to the conversion rate for amounts used to determine personal tax credits for purposes of calculating income tax: first to 16% (for 2017) in the Budget Speech and then to 15% (for 2017 and 2018) in the update to the Québec Economic Plan on November 21, 2017.

For more information, see:

• Tax News article General Tax Reduction – Increase in the Basic Tax Credit (published on May 3, 2017)
• “Clarifications concerning source deductions of income tax” on page A.13 of the Additional Information 2017-2018 published by the Ministère des Finances
• Information Bulletin 2017-11 (published as part of the update to the Québec Economic Plan)

As of 2018, the rate applicable to variable E (the value of personal tax credits in guide TP-1015.F-V, Formulas to Calculate Source Deductions and Contributions) is reduced from 20% to 15% (not from 16% to 15%).

In the Budget Speech of March 28, 2017, changes to the rates and amounts used to calculate personal tax credits for 2017, including the rate reduction from 20% to 16%, were announced. However, the Ministère des Finances stated that these changes would not apply to the calculation of income deducted at source for 2017.

Therefore, the rate applicable to variable E in the formulas used to calculate source deductions of Québec income tax was 20% for all of 2017. This is despite reductions to the conversion rate for amounts used to determine personal tax credits for purposes of calculating income tax: first to 16% (for 2017) in the Budget Speech and then to 15% (for 2017 and 2018) in the update to the Québec Economic Plan on November 21, 2017.

For more information, see:

• Tax News article General Tax Reduction – Increase in the Basic Tax Credit (published on May 3, 2017)
• “Clarifications concerning source deductions of income tax” on page A.13 of the Additional Information 2017-2018 published by the Ministère des Finances
• Information Bulletin 2017-11 (published as part of the update to the Québec Economic Plan)

As of 2018, the rate applicable to variable E (the value of personal tax credits in guide TP-1015.F-V, Formulas to Calculate Source Deductions and Contributions) is reduced from 20% to 15% (not from 16% to 15%).

In the Budget Speech of March 28, 2017, changes to the rates and amounts used to calculate personal tax credits for 2017, including the rate reduction from 20% to 16%, were announced. However, the Ministère des Finances stated that these changes would not apply to the calculation of income deducted at source for 2017.

Therefore, the rate applicable to variable E in the formulas used to calculate source deductions of Québec income tax was 20% for all of 2017. This is despite reductions to the conversion rate for amounts used to determine personal tax credits for purposes of calculating income tax: first to 16% (for 2017) in the Budget Speech and then to 15% (for 2017 and 2018) in the update to the Québec Economic Plan on November 21, 2017.

For more information, see:

• Tax News article General Tax Reduction – Increase in the Basic Tax Credit (published on May 3, 2017)
• “Clarifications concerning source deductions of income tax” on page A.13 of the Additional Information 2017-2018 published by the Ministère des Finances
• Information Bulletin 2017-11 (published as part of the update to the Québec Economic Plan)

As of 2018, the rate applicable to variable E (the value of personal tax credits in guide TP-1015.F-V, Formulas to Calculate Source Deductions and Contributions) is reduced from 20% to 15% (not from 16% to 15%).

In the Budget Speech of March 28, 2017, changes to the rates and amounts used to calculate personal tax credits for 2017, including the rate reduction from 20% to 16%, were announced. However, the Ministère des Finances stated that these changes would not apply to the calculation of income deducted at source for 2017.

Therefore, the rate applicable to variable E in the formulas used to calculate source deductions of Québec income tax was 20% for all of 2017. This is despite reductions to the conversion rate for amounts used to determine personal tax credits for purposes of calculating income tax: first to 16% (for 2017) in the Budget Speech and then to 15% (for 2017 and 2018) in the update to the Québec Economic Plan on November 21, 2017.

For more information, see:

• Tax News article General Tax Reduction – Increase in the Basic Tax Credit (published on May 3, 2017)
• “Clarifications concerning source deductions of income tax” on page A.13 of the Additional Information 2017-2018 published by the Ministère des Finances
• Information Bulletin 2017-11 (published as part of the update to the Québec Economic Plan)

As of 2018, the rate applicable to variable E (the value of personal tax credits in guide TP-1015.F-V, Formulas to Calculate Source Deductions and Contributions) is reduced from 20% to 15% (not from 16% to 15%).

In the Budget Speech of March 28, 2017, changes to the rates and amounts used to calculate personal tax credits for 2017, including the rate reduction from 20% to 16%, were announced. However, the Ministère des Finances stated that these changes would not apply to the calculation of income deducted at source for 2017.

Therefore, the rate applicable to variable E in the formulas used to calculate source deductions of Québec income tax was 20% for all of 2017. This is despite reductions to the conversion rate for amounts used to determine personal tax credits for purposes of calculating income tax: first to 16% (for 2017) in the Budget Speech and then to 15% (for 2017 and 2018) in the update to the Québec Economic Plan on November 21, 2017.

For more information, see:

• Tax News article General Tax Reduction – Increase in the Basic Tax Credit (published on May 3, 2017)
• “Clarifications concerning source deductions of income tax” on page A.13 of the Additional Information 2017-2018 published by the Ministère des Finances
• Information Bulletin 2017-11 (published as part of the update to the Québec Economic Plan)

The limits and rates used to determine deductible automobile expenses and calculate the taxable benefits related to the use of an automobile for 2018 are as follows:

• For purposes of capital cost allowance (CCA), the maximum capital cost of passenger vehicles remains unchanged at $30,000 (plus GST and QST) for vehicles purchased after 2017. 
• The limit on the deduction of leasing costs remains unchanged at $800 per month (plus GST and QST) for leases entered into after 2017. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost. 
• The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre. 
• The limit on the deduction of interest paid on amounts borrowed to purchase a passenger vehicle remains unchanged at $300 per month for loans related to vehicles acquired after 2017. 
• The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 23 cents per kilometre.

The limits and rates used to determine deductible automobile expenses and calculate the taxable benefits related to the use of an automobile for 2018 are as follows:

• For purposes of capital cost allowance (CCA), the maximum capital cost of passenger vehicles remains unchanged at $30,000 (plus GST and QST) for vehicles purchased after 2017. 
• The limit on the deduction of leasing costs remains unchanged at $800 per month (plus GST and QST) for leases entered into after 2017. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost. 
• The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre. 
• The limit on the deduction of interest paid on amounts borrowed to purchase a passenger vehicle remains unchanged at $300 per month for loans related to vehicles acquired after 2017. 
• The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 23 cents per kilometre.

The limits and rates used to determine deductible automobile expenses and calculate the taxable benefits related to the use of an automobile for 2018 are as follows:

• For purposes of capital cost allowance (CCA), the maximum capital cost of passenger vehicles remains unchanged at $30,000 (plus GST and QST) for vehicles purchased after 2017. 
• The limit on the deduction of leasing costs remains unchanged at $800 per month (plus GST and QST) for leases entered into after 2017. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost. 
• The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre. 
• The limit on the deduction of interest paid on amounts borrowed to purchase a passenger vehicle remains unchanged at $300 per month for loans related to vehicles acquired after 2017. 
• The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 23 cents per kilometre.

The limits and rates used to determine deductible automobile expenses and calculate the taxable benefits related to the use of an automobile for 2018 are as follows:

• For purposes of capital cost allowance (CCA), the maximum capital cost of passenger vehicles remains unchanged at $30,000 (plus GST and QST) for vehicles purchased after 2017. 
• The limit on the deduction of leasing costs remains unchanged at $800 per month (plus GST and QST) for leases entered into after 2017. Under a separate restriction, deductible leasing costs are prorated where the value of the passenger vehicle exceeds the maximum capital cost. 
• The limit on the deduction of tax-exempt allowances paid by employers to employees using their personal vehicle for business purposes has been increased to 55 cents per kilometre for the first 5,000 kilometres and 49 cents for each additional kilometre. 
• The limit on the deduction of interest paid on amounts borrowed to purchase a passenger vehicle remains unchanged at $300 per month for loans related to vehicles acquired after 2017. 
• The prescribed rate used to determine the taxable benefit respecting the portion of operating expenses which relates to an employee's personal use of an automobile provided by the employer has been increased to 26 cents per kilometre. For taxpayers employed principally in selling or leasing automobiles, the prescribed rate has been increased to 23 cents per kilometre.

Starting January 1, 2018, input tax refund (ITR) restrictions for large businesses will be phased out.

Large businesses will be entitled to claim ITRs on goods and services subject to the restrictions at the following rates:

• 25% for 2018;
• 50% for 2019;
• 75% for 2020;
• 100% for 2021 onward.

On January 1 of each year, QST that has been paid or becomes payable for acquisitions of goods and services subject to the restrictions can be included (at the applicable rate for the year) in the calculation of the large business's ITRs.

For general information about:

• allowances for expenses subject to the restrictions, click Allowances;
• taxable benefits related to goods and services subject to the restrictions, click Employee Benefits;
• the trade-in of a road vehicle subject to the restrictions, click Purchaser Not Required to Collect the GST or QST (or Calculate the QST);
• the reimbursement of expenses that are incurred by employees and subject to the restrictions, click Reimbursements;
• the QST on goods and services subject to the restrictions that must be remitted upon the cancellation of QST registration, click Paying GST and GST on Property in Your Possession at the Time of Cancellation;
• motor vehicles at the disposal of a dealership's employees and clients, click Use of Courtesy or Demonstration Vehicles.

For more information, consult interpretation bulletin TVQ. 206.1-10, Particulars regarding the phasing out of the ITR restrictions applicable to large businesses that is to begin on January 1, 2018, on the Publications du Québec website.

Starting January 1, 2018, input tax refund (ITR) restrictions for large businesses will be phased out.

Large businesses will be entitled to claim ITRs on goods and services subject to the restrictions at the following rates:

• 25% for 2018;
• 50% for 2019;
• 75% for 2020;
• 100% for 2021 onward.

On January 1 of each year, QST that has been paid or becomes payable for acquisitions of goods and services subject to the restrictions can be included (at the applicable rate for the year) in the calculation of the large business's ITRs.

For general information about:

• allowances for expenses subject to the restrictions, click Allowances;
• taxable benefits related to goods and services subject to the restrictions, click Employee Benefits;
• the trade-in of a road vehicle subject to the restrictions, click Purchaser Not Required to Collect the GST or QST (or Calculate the QST);
• the reimbursement of expenses that are incurred by employees and subject to the restrictions, click Reimbursements;
• the QST on goods and services subject to the restrictions that must be remitted upon the cancellation of QST registration, click Paying GST and GST on Property in Your Possession at the Time of Cancellation;
• motor vehicles at the disposal of a dealership's employees and clients, click Use of Courtesy or Demonstration Vehicles.

For more information, consult interpretation bulletin TVQ. 206.1-10, Particulars regarding the phasing out of the ITR restrictions applicable to large businesses that is to begin on January 1, 2018, on the Publications du Québec website.