A non-resident of Quebec that is not already a QST registrant is required become a QST registrant and to collect and remit QST on a supply made in Quebec of a movable property or service only if that supply is made in the course of carrying on business in Quebec. The factors generally considered to determine whether business is being carried on in a given jurisdiction include (but are not limited to) the following:
- the place where agents or employees of the non-resident are located;
- the place of delivery;
- the place where purchases are made or assets are acquired;
- the place from which transactions are solicited;
- the location of assets or an inventory of goods;
- the place where the business contracts are made;
- the location of a bank account;
- the place where the non-resident’s name and business are listed in a directory;
- the location of a branch or office;
- the place where the service is performed; and
- the place of manufacture or production.
In addition to the foregoing considerations, a special rule requires a non-resident of Quebec that is not already a QST registrant to become a QST registrant and to collect and remit QST on a supply made in Quebec of a movable property or a service if that supply is of an admission in respect of an activity, a seminar, an event of a place of amusement unless the non-resident supplier acquired the admission from another person.
Place of supply rules
If it is determined that the supply is made in the course of carrying on business in Quebec, the place of supply rules apply to determine whether Quebec nevertheless concedes jurisdiction to another province. The place of supply rules apply equally to QST registrants and residents of Quebec.
According to the place of supply rules, the province with jurisdiction is generally the one in which the supply occurs. For example:
- if the goods supplied are tangible personal property (referred to in Quebec as “corporeal movable property”) then the relevant province is generally the one in which the goods are delivered or made available to the recipient;
- if the supply is of real estate then the relevant province is generally the one in which that real estate is located; and
- if the supply is of intangible personal property, jurisdiction will depend on a number of factors, including the place in which the property can be used and the address of the purchaser as provided to the supplier.
When services are supplied, the relevant province is generally determined according to the home or business address of the purchaser, although specific rules apply for certain types of services. Services related to real estate, for example, are deemed to be made in Quebec if that real estate is located in Quebec.
The place of supply rules are extensive and the above examples are general and for illustrative purposes only.
When property and services are brought into an HST province from another province (whether or not such other province is also an HST province) or from outside Canada for consumption, use or supply in that HST province, the supplier is required to self-assess since no actual purchase and sale occurs.
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