Billing GST and QST correctly
If you run a rental business in Quebec, you must charge GST (5%) and QST (9.975%) to your customers. But the rules vary by customer province, service type, and certain specific exemptions.
Here is what you need to know to stay compliant, and how Rentix automates everything for you.
Who has to charge GST and QST?
If your annual revenue exceeds CAD $30,000, you are required to be registered for GST and QST and to charge them to your customers. Below that threshold, you are considered a "small supplier" and can choose.
Even as a small supplier, many business customers will ask for tax invoices to claim input credits. It often pays to register from the start.
Mandatory registration numbers
On every invoice, you must display your GST number (format 123456789RT0001) and your QST number (format 1234567890TQ0001). Without these numbers, your customer cannot claim input credits.
In Rentix, you add these numbers once in your account settings and they appear automatically on every invoice, in the right place per Revenu Quebec requirements.
Rules by customer province
If you bill a customer in Quebec, you apply GST + QST. If the customer is in Ontario, Alberta, or British Columbia, you apply only GST (plus their provincial tax if applicable). For a customer abroad, it's usually exempt.
Rentix automatically determines the right taxes based on the customer's billing address. You no longer need to wonder which rate applies: the software does it for you on every invoice.
Correct QST-on-GST calculation
Since 2013, QST is calculated on the pre-tax subtotal (no longer on subtotal + GST as before). So a $100 rental gives: GST = $5, QST = $9.975, total = $114.975 rounded to $114.98.
A common mistake is to still apply the old method. Rentix always uses the official current method, protecting you from miscalculations that could trigger a reassessment notice.
Edge cases: deposits, delivery, out-of-province
Security deposits are not taxable until they are forfeited. Delivery fees are taxable at the same rate as the rental itself. Rentals to QST-registered businesses outside Quebec can be billed at a zero rate.
Rentix handles these edge cases automatically. You can also manually configure exceptions for specific customers (non-profits, government programs, etc.).
Quarterly reports and filings
You must report your taxes to Revenu Quebec and the Canada Revenue Agency on the assigned frequency (annual, quarterly, or monthly). Rentix automatically generates a summary of taxes collected and paid during the period.
All you have to do is transcribe the amounts onto the online form or pass them to your accountant. No more Excel calculations and transcription errors.
Automate your GST/QST invoicing
Rentix calculates, applies and reports the taxes for you. Free 14-day trial, no credit card.