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Software Sales Tax in Quebec 🇨🇦

How do I solve my tax liability?
Agony Rating
Sales Tax Rate
Taxable Goods
Highest Penalty

How likely am I to get caught for owing sales tax in Quebec?

Very likely. Businesses who sell SaaS or downloadable software to customers in Quebec are very likely to be liable for sales tax.

What is the sales tax threshold in Quebec?

The current sales tax threshold in Quebec is CAD30,000.

Is SaaS taxable in Quebec?

Yes. You owe tax for the sale of cloud software subscriptions to customers in Quebec.

Are software downloads taxable in Quebec?

Yes. You owe tax for the sale of software downloads to customers in Quebec.

Are eBooks taxable in Quebec?

Yes. You owe tax for the sale of eBooks to customers in Quebec.

Are digital downloads taxable in Quebec?

Yes. You owe tax for the sale of digital downloads to customers in Quebec.

Registering for QST in Quebec

😐🌶️ It's not that complicated

If you sell software or digital products to customers in Quebec, you’ll need to register when your sales exceed CAD30,000 a year. 

Filing & Remittance of QST in Quebec

😐🌶️ It's not that complicated

Filing frequency: Quarterly

The Canadian tax authority has one of the simplest processes for filing sales tax. This is largely because they’re trusting you to do your tax calculations correctly – as such, they only ask you to submit the amount of tax you owe for that period. 

This is different from the majority of other tax jurisdictions, where you’d also need to input your total sales and upload documents to back those figures up.

Penalties for QST non-compliance in Quebec

😐🌶️ It stacks up

Penalties for non-compliance with QST regulations in Quebec can seem insignificant at first glance but can quickly stack up, especially if you have a high volume of sales there. 

Late filing or late payments can result in a percentage penalty on the amount due, which increases incrementally each month until the payment is made.

Had enough yet? There's more…

How to become sales tax compliant globally 🗺

Three Routes to Compliance for SaaS Executives

SaaS executives have a choice of three routes to global tax compliance. Get the guide to walk through the options for your team.

Download the guide »

Don't Worry, Ask Hugo

As CFO of Paddle, Hugo's finance team manages global tax compliance for $100M's of ARR from over 2,000 software businesses. Ask your questions in our live webinar.

Register here »

How can Paddle help?

Paddle can take all your responsibility & liability for sales tax off-your hands. Our global entities, finance team, and $160k+ year spend on agents, tooling, and accountants is ready for you.

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