Canada Quebec foreign digital service sales tax Sept 2019

Foreign providers of digital services to Quebec consumers must register for Quebec Sales Tax (QST) from 1 September 2019. Resident providers have been liable to charge QST since 1 January 2019. The extension of the tax net is aimed at levelling the playing field for Quebec-resident providers which have to levy QST on local sales to consumers.

QST is currently levied at 9.975%. The federal 5% Goods and Services Tax is not due on such supplies for the time being. The province of Saskatchewan also levies its provincial sales tax on digital services.

Taxpayers may appoint a local tax agent. There will be an annual registration threshold of C$30,000.