FP-500-V -
Detailed Calculations
General information about the GST/HST and the QST
GST/HST refers to the goods and services tax (GST), the harmonized sales tax (HST), or both.
If you collected or adjusted an amount of HST, you must add this amount to the corresponding GST amount and enter the combined GST/HST amount in the appropriate GST/HST box. You may continue to claim ITCs in respect of the GST/HST paid on allowable purchases and expenses, regardless of whether you paid the HST or the GST.
This form provides general information to help you fulfil the requirements for registrants and comply with the law. The information does not constitute a legal interpretation of the Excise Tax Act, the Act respecting the Québec sales tax or their regulations. For further information, please consult these statutes or contact the Revenu Québec office in your area.
See the booklet entitled General Information Concerning the QST and the GST/HST (IN-203-V) for particulars concerning the simplified accounting methods.
Penalties and interest
Pursuant to section 59 of the Tax Administration Act, anyone who neglects to file a return as and when prescribed by a fiscal law is liable to a penalty of $25 per day until the return is filed, to a maximum of $2,500. In addition, under section 59.2 of the Act, anyone who neglects to collect an amount is liable to a penalty equal to 15% of the amount in question, and anyone who neglects to pay or remit an amount within the prescribed time period is liable to a penalty equal to 7% of the amount (for the first seven days the payment is late), 11% of the amount (for the 8th to 14th day the payment is late) and 15% of the amount (as of the 15th day the payment is late). Similarly, pursuant to the Excise Tax Act, anyone who is late in filing a return is liable to a penalty, applicable to any amount payable on a late return. Such a penalty is equal to 1% of the unpaid amount, plus an additional penalty of 0.25% of the unpaid amount for each month the return is late (up to 12 months). Furthermore, interest is charged at the rate set by regulation on all outstanding amounts.
Obligation to keep documents
Anyone who carries on a business, or who is required to withhold or collect an amount under a fiscal law, is required to keep registers and books of account, and to take an annual inventory. The registers and books of account, along with any supporting documents, must be kept for six years after the end of the reporting period in which the information contained in them is reported. Failure to meet these obligations is an offence rendering the offender liable to legal action.
Confidentiality
Personal information provided on this form is protected under the Tax Administration Act (R.S.Q., c. A-6.002) and the Privacy Act (R.S.C., 1985, c. P-21) and is maintained in Personal Information Bank RCC/P-PU-080.
For further information, refer to the booklet entitled General Information Concerning the QST and the GST/HST (IN-203-V), or contact the Revenu Québec office in your area.
GST/HST – QST offset
You may use GST/HST – QST offset only if you have an amount payable under one of the laws concerned and if you are claiming a refund under the other law. Revenu Québec may disallow GST/HST – QST offset if the registrant has another debt to the federal or Québec government (even if an agreement has been reached with respect to the payment of the debt), or if the registrant has not filed a return for a previous reporting period.
Explanatory notes
GST/HST
Box 101 – Enter the total value (GST/HST and QST excluded) of the goods and services you supplied. (Do not include goods and services you exported.) This amount must, as a rule, correspond to the sales figure entered in your books of account.
Box 103 – This amount represents the GST/HST collectible by Revenu Québec. Enter the total GST/HST that you collected, that is payable to you, or that you are considered to have collected for the reporting period. Do not take into account the GST/HST applicable to your acquisitions of real property or your imported taxable supplies, which you are required to report separately (boxes 114 and 115).
Box 104 – Enter the total of the amounts that may be added to the GST/HST collectible, for the purposes of the calculation of your net tax for the reporting period. Examples of such amounts include GST/HST derived from the recovery of a debt that has been written off, the difference between a full ITC claimed with respect to meals and entertainment expenses and the 50% allowed, and the self-assessment of tax on a residential complex.
Box 106 – Enter the total of the input tax credits (ITCs) claimed for the reporting period and any ITCs not claimed during a previous reporting period in respect of goods and services acquired to make taxable and zero-rated supplies. Do not include notional ITCs respecting used goods acquired (except in the case of used returnable containers). You generally have four years in which to claim an ITC.
Box 107 – Enter the total of the amounts that may be added to the ITCs claimed in box 106. Examples of such amounts are GST/HST included in a debt that has been written off, and GST credited by a builder, as a GST rebate, to the purchaser of new housing (where the purchaser is an individual). In the latter case, the purchasers rebate application must be enclosed with the builders return. Please note that the GST/HST giving entitlement to an ITC respecting acquisitions of real property, which you reported separately in box 114, may be included in the amount entered in box 107. A GST/HST amount credited to a non-resident respecting the supply of installation services in Canada may also be included in this box. In the case, the rebate application of the non-resident must be enclosed with the registrants return.
Box 111 – You can offset the amount of net GST/HST payable using certain GST/HST rebates to which you are entitled. The various rebate application forms, such as the GST/HST Rebate Application for Public Service Bodies (form FPZ-66-V) and the General GST/HST Rebate Application (form FP-189-V), contain a section where you can elect to carry the amount of the rebate directly to line 111 of the GST/HST return. Doing so will reduce the amount of net GST/HST payable. Rebate applications must either be filed with the paper copy of your GST/HST return if you file your return by mail, or filed separately by mail if you are required to file your return electronically.
Box 114 – Determine the taxable value of the real property you acquired for use or supply primarily in the course of your commercial activities. Calculate the GST or the HST you are required to report and pay by multiplying the value of the real property by the GST or HST rate.
Box 115 – Determine the taxable value of supplies of services or intangible personal property you imported or of certain goods subject to the drop-shipment rules. Calculate the GST or the HST you are required to report and pay by multiplying the value of the supplies by the GST or HST rate.
QST
Box 203 – This amount represents the QST collectible by Revenu Québec. Enter the total QST that you collected, that is payable to you, or that you are considered to have collected for the reporting period. Also enter the total QST payable on any taxable property and services brought into Québec on which QST must be paid. In addition, enter the total tax on insurance premiums that was not paid upon full or partial payment of the premiums.
Do not take into account the QST applicable to your acquisitions of immovables, which you are required to report separately in box 214.
Box 204 – Enter the total of the amounts that may be added to the QST collectible, for the purposes of the calculation of your net tax for the reporting period. Examples of such amounts include QST derived from the recovery of a debt that has been written off, a QST refund claimed previously with respect to property returned to the supplier, and the self-assessment of tax on a residential complex.
Box 206 – Enter the total of the input tax refunds (ITRs) claimed for the reporting period and any ITRs not claimed during a previous reporting period in respect of property and services acquired to make taxable or zero-rated supplies. Do not include the tax paid on property and services used to make exempt supplies or in respect of which ITRs may not generally be claimed (such as road vehicles with a net weight of less than 3,000 kg and gasoline where these supplies are acquired by large businesses, or the QST paid on automotive vehicles purchased, for resale, on or after May 1, 1999. You generally have four years in which to claim an ITR.
Box 207 – Enter the total of the amounts that may be added to the ITRs claimed in box 206. Take into account amounts such as QST included in a debt that has been written off and QST collected on property subsequently returned by the customer (where the QST was remitted to Revenu Québec), as well as QST credited by a builder, as a QST rebate, to the purchaser of new housing (where the purchaser is an individual). In the latter case, the purchasers rebate application must be enclosed with the builders return. Any QST paid in error must be included in the amount entered in box 207, within two years after the payment was made (except QST paid on automotive vehicles purchased, for resale, on or after May 1, 1999, which must be recovered from the supplier). You may also include, in box 207, QST entitling you to ITRs respecting acquisitions of immovables, which you reported separately in box 214. You may not make another claim respecting the amounts entered in this box, and you must keep all information pertaining to the amounts.
Box 211 – You can offset the amount of net QST payable using certain QST rebates to which you are entitled. The various rebate application forms, such as the Application for QST Rebate for Public Service Bodies (form VDZ-387-V), contain a section where you can elect to carry the amount of the rebate directly to line 211 of the QST return. Doing so will reduce the amount of net QST payable. Rebate applications must either be filed with the paper copy of your GST/HST return if you file your return by mail, or filed separately by mail if you are required to file your return electronically.
Box 214 – Determine the taxable value of the immovables you acquired for use or supply primarily in the course of your commercial activities. Calculate the QST you are required to report and pay by multiplying the value of the immovables (GST included) by the QST rate.