December 12th, 2023
Self-assessment provides a level playing field with respect to competition from foreign markets. It is a measure that prevents a Quebec resident from benefiting economically by purchasing goods or services, normally taxable from a non-registrant/non-resident, without having to pay GST/QST. The purchaser is responsible for the payment of GST & QST for acquisitions outside Quebec.
For a GST/QST registrant, generally only GST is collected by the customs broker when acquiring tangible personal property from outside Canada, but not QST.
GST and QST are not collected by the customs broker when acquiring services or intangible goods originating outside of Canada because they do not physically cross the border.
The GST/QST applies at a rate of 5% for the GST and 9.975% for the QST, respectively, to taxable supplies (other than zero-rated supplies) of intangible personal property and services that are acquired to be used made in Quebec by electronic means.
How is the self-assessment obligation determined?
You need to determine the mailing address of your supplier on the web to determine if you need to self-assess GST/QST. In fact, if the supplier is located in Quebec, you do not have to self-assess. The supplier is the one who has the obligation to collect the GST/QST. If you are not sure of the supplier’s address or if the supplier’s address is outside Canada/Quebec and GST/QST has not been collected, you must self-assess if the good or service is not acquired for exclusive use in your commercial activities. If you believe that the supplier in Quebec or Canada is not a “small supplier”, you should contact the supplier to find out if they are registered and if GST/QST is included in the price charged.
