Quebec Billing: Navigating QST, Language Law, and Industry-Specific Rules
Quebec's tax system stands apart from every other Canadian province. The province levies a 9.975% QST on top of the 5% federal GST, but since 2013 the QST is calculated on the subtotal only, not compounded on the GST amount. This is a critical distinction that many out-of-province businesses get wrong when invoicing Quebec clients. A $1,000 service invoiced in Quebec should show $50.00 GST and $99.75 QST for a total of $1,149.75, not the $1,154.74 that results from the old compound method.
Pre-2013 vs Post-2013 QST Calculation
Before January 1, 2013, QST was calculated on the subtotal plus GST (the compound method). For a $1,000 invoice, the old method produced: GST = $50.00, then QST = ($1,000 + $50) x 9.975% = $104.74, for a total of $1,154.74. After 2013, the formula changed so both taxes are calculated independently on the subtotal: GST = $50.00, QST = $1,000 x 9.975% = $99.75, total = $1,149.75. The difference is $4.99 on a $1,000 invoice. Using the old compound method today will overcharge your clients and create compliance issues with Revenu Quebec.
Bill 96 and French Language Requirements
Under Bill 96, which strengthened Quebec's Charter of the French Language in 2022, commercial documentation including invoices must be available in French. Businesses can provide bilingual invoices, but French must be at least as prominent as English. This applies to all companies doing business in Quebec, not just those headquartered there. For businesses in neighbouring New Brunswick that serve Quebec clients, this means maintaining French-language invoice templates even if your own province operates primarily in English. Having bilingual templates ready is not optional for Quebec-facing commerce.
Construction, RBQ Licensing, and Revenu Quebec
Quebec's construction industry requires contractors to hold a Regie du batiment du Quebec (RBQ) licence, and invoices for construction services must include the licence number. Revenu Quebec, not the CRA, administers QST collection and filing, which means Quebec businesses manage two separate filing relationships: GST returns to the CRA and QST returns to Revenu Quebec. This dual filing creates opportunities for discrepancies if your invoicing system does not cleanly separate the two tax amounts. Reviewing our guide on CRA invoice compliance alongside Revenu Quebec's requirements ensures both agencies receive consistent numbers.