With Bill 49, Finances Québec would amend the QSTTA to provide flexibility for the refund of QST paid in error to suppliers registered in the designated QST plan
Even though the designated QST plan has been in effect since January 1, 2019, the terms of the refund of QST paid in error by registrants in the regular QST plan to suppliers registered in the designated QST plan have not always been well understood.
Suppliers could, subject to an application made within 2 years of the day on which the amount was charged or collected, refund a purchaser who had paid such an amount of tax in error (if the purchaser was registered in the regular QST system, for example).
As this deadline was not always known, many taxpayers paid such amounts in error and were unable to get them reimbursed because they were often overdue, or had no cooperation from suppliers.
Bill 49, which received Royal Assent last May, provides that, where such a supplier has charged or collected QST from a recipient solely because the recipient had not provided satisfactory proof to the Minister of the recipient’s registration in the regular QST system, and where such proof is subsequently provided, this amount is deemed to exceed the tax the supplier was required to collect. In addition, if this condition is met, the two-year period is deemed not to end before November 7, 2024, if this period began before May 7, 2024 and, within this two-year period, the person or registrant refused to adjust the amount of QST.
This is excellent news for those who have mistakenly paid such a large amount of tax (to Facebook, LinkedIn, or Google, for example), although this is not a QST-only measure.
If your company has mistakenly paid taxes to these suppliers in recent years, be sure to contact us for clarification and a refund.
Important
Suppliers have until November 7, 2024 to refund QST paid in error that goes back more than 2 years from January 1, 2019. Act quickly so you don’t lose that refund. We can represent you with suppliers to obtain your QST refund.
