Work/ Taxes Québec

Consumption Taxes

Goods and Services Tax (GST) is a VAT (value added tax) charged on most goods and services, such as food and entertainment. It is calculated at a rate of 5% on the selling price.

In addition there is the Québec sales tax (QST), which is calculated at a rate of 9.5% on the selling price plus GST.

Sample Calculation
• Sell price $100
• GST ($100 × 5%) = $5
• QST ([$100 + $5] × 9.5%) = 9.98
• Total = $114.98

Social Insurance Number

Your Social Insurance Number (SIN) identifies you for tax purposes in Canada. This nine-digit number is necessary to work in Canada or to have access to government programs and benefits.

You should apply for a SIN as soon as you arrive in Canada. Apply at a Service Canada Centre. If your application and documents are in order, you will get a Social Insurance Number in one visit and receive your card within 10 business days.

• Primary document (official document that proves your identity and status in Canada). This can be a Certificate of Birth, Certificate of Canadian Citizenship, Permanent Resident Card issued by Citizenship and Immigration Canada, Confirmation of Permanent Residence AND visa counterfoil affixed to a foreign passport or a travel document, Confirmation of Permanent Residence AND foreign passport. Must be original. If the name on this document is different from the name you currently use, you will also need to provide a supporting document.

Reporting

In Québec, taxes must be filed with both to the federal and provincial governments. Canada Revenue Agency is the federal tax authority and Revenu Québec is the provincial tax authority.

Individuals who reside in Canada usually file one income tax return for the tax year (January 1st-December 31st). On an income tax return you must list your income and deductions, calculate federal and provincial/territorial tax, and determine if you have a balance owing for the year