Effective January 1, 2020, unless certain exceptions apply, vendors will be required to provide a Tax Verification Letter before contracts with the Province valued at equal to or above $100,000 (including all fees, expenses and options to extend or renew) can be entered into, extended or renewed. This requirement will ensure vendors entering into contracts with the Province are compliant with certain tax obligations. Link: https://www2.gov.bc.ca/gov/content/governments/services-for-government/bc-bid-resources/reference-resources/corporate-requirements-and-guidelines/tax-verification-letters
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.
Contact Shawna at 778-772-7240 or email below: