What is a zero-rated sale?
This is a sale that is taxable at the rate of 0%. Consequently, a business does not have to charge the GST or QST on this type of sale.
The following are examples of goods and services whose sale is zero-rated:
• basic groceries;
• prescription drugs;
• certain medical devices;
• certain farming and fishing sector products and property;
• livestock in general;
• certain property exported outside Canada (or shipped outside Québec, under the QST system);
• certain passenger or freight transportation services.
What is a public service body?
A public service body is a non-profit organization, charity, public institution, municipality, school authority, hospital authority,
public college or university.
Under what circumstances must a business make instalment payments?
A business that files an annual return must make four instalment payments (one per quarter) where both of the following apply:
• the net GST or QST that the business expects to remit for a year is $3,000 or more; and
• the business remitted an amount of $3,000 or more for the preceding year.
A business must pay the QST in instalments when its net QST is $3,000 or more even if it is not required to pay the GST in
instalments because its net GST is less than that amount.
What is the filing frequency for the tax on lodging?
The filing frequency for the tax on lodging is quarterly. The period covered by the return must correspond to a calendar quarter.
The deadline for remitting the tax for a particular calendar quarter is the last day of the month that follows the end of the
calendar quarter.
What is the filing frequency for the municipal tax for 9-1-1 service?
The filing frequency for the municipal tax for 9-1-1 service is the same as the filing frequency for the QST (see section 5.1.3).
How often are source deductions remitted?
We assign a monthly source deductions and employer contributions remittance frequency to new employers for at least
12 months. The deadline for making remittances is the 15th day of the month following every month in which a salary, wages
or remuneration was paid. However, after the first 12 months, some new employers may choose to make quarterly remittances.
Quarterly remittances must be made on the 15th day of the month following the calendar quarters ending on March 31,
June 30, September 30 and December 31. Once chosen, the option to make quarterly remittances stays in effect as long as
the total amount of source deductions and employer contributions remains under $1,000 or as long as the new employer
meets all of its tax obligations. Regardless of whether the new employer has an employer identification number, remittances
must be made before the above-mentioned deadlines.
How does a person become authorized to sign on behalf of a business?
A corporation has one option
• It must provide a resolution of the board of directors or, if all the powers of the board of directors have been removed, an
excerpt from the unanimous shareholder agreement, articles of incorporation or by-law proving that the person is authorized
to sign on the corporation’s behalf.
Any other type of business (for example, individual in business or partnership) has two options
• It can grant someone power of attorney.
• It can complete form MR-69-V,
Authorization to Communicate Information or Power of Attorney
, specifying that the person
can sign on its behalf.
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