FP-611-V - Request for Cancellation or Variation of Registration

F – General Information

Important

The general information provided on this form is for your convenience and guidance only; it does not replace the Excise Tax Act, the Act respecting the Québec sales tax or any regulations made thereunder. As the information may not apply to your particular situation, we suggest you consult the legislation, or write or telephone an office of Revenu Québec to request further information.

Who should complete this form?

This form is for persons who wish to request the cancellation or variation of their GST/HST registration, their QST registration, or both. It allows

• persons who no longer carry on commercial activities to request the cancellation of their registration because it is no longer required;
• small suppliers to cancel their registration;
• persons who no longer carry on commercial activities in Québec but continue to carry on activities elsewhere in Canada to cancel their QST registration only.

The request will be accepted if the Minister is satisfied that the registration is no longer required or that it must be varied.

Effects of cancellation of GST/HST registration

If you cancel your GST/HST registration, your QST registration will automatically be cancelled as well, unless you are engaged in one of the activities described in points 1 to 5 in section 2(e) of Part B.

Reapplying for registration

If your registration was cancelled but you cease to be considered a small supplier, you must reapply for GST/HST and QST registration.

Submitting your application

Please send the duly completed application form to an office of Revenu Québec.

G – Instructions

Effective date of cancellation or variation (Part C)

• Cancellation of the registration of a small supplier that has been registered for one year or more may take effect at any time during the taxation year. As of that date, the registrant will no longer be required to collect the GST/HST or the QST on taxable supplies; nor will the registrant be entitled to input tax credits (ITCs) or input tax refunds (ITRs) respecting the GST/HST and the QST paid on taxable inputs.
• In all other cases, the effective date of the cancellation is the date on which commercial operations ceased.

Revenu Québec will inform the registrant of the effective date of the cancellation or variation.

Value of property held at the time of cancellation of registration (Part D)

When a person’s registration is cancelled, the person is deemed to have

• sold, immediately prior to cancellation of registration, the property that was for use in the course of commercial activities and for which the registrant could claim ITCs and ITRs;
• collected the GST/HST and the QST on the fair market value of the property (with the exception of capital property);
• sold any capital property immediately prior to cancellation of registration and collected the GST/HST and the QST equivalent to its tax content at that time. The “tax content” is the GST/HST and the QST that should have been paid on this property and on any improvements made to the property, after any recoverable amount (except an ITC and an ITR) is deducted, and after depreciation of the property is taken into account.

The person will be required to remit to Revenu Québec the GST/HST and the QST on these deemed sales with the last return filed as a registrant.

H – Definitions

“Business” includes a profession, calling, trade, manufacture or undertaking of any kind whatever, whether or not the activity or undertaking is engaged in for profit, and any activity engaged in on a regular or continuous basis that involves the supply of property by way of lease, licence or similar arrangement. The term “business” does not include an office or employment.

“Commercial activity” means

• any business carried on by a person;
• any adventure or concern of a person in the nature of trade; and
• any activity engaged in by a person that involves the supply of an immovable (called “real property” for GST/HST purposes).

However, the term “commercial activity” does not include

• an activity engaged in without a reasonable expectation of profit by an individual, a personal trust or a partnership made up of individuals; or
• an activity that involves the making of an exempt supply.

“Exempt supply” refers to any supply included in Schedule V of the Excise Tax Act or covered in sections 93 through 172.1 of the Act respecting the Québec sales tax (i.e., childcare services, legal-aid services, most educational services, most supplies made by charities).

“Person” means an individual, partnership, corporation, trust or succession (estate), or a body that is an association, union, club, commission or other organization of any kind.

“Public service body” means a non-profit organization, a charity, a municipality, a school authority, a hospital authority, a public college or a university.

“Registrant” means a person that is registered or that is required to register for the GST/HST or the QST.

“Small supplier” means a person whose total taxable and zero-rated supplies (including those of the person’s associates) did not exceed $30,000 ($50,000 for public service bodies) throughout the current calendar quarter and the four calendar quarters preceding it. The GST/HST and QST, proceeds from the sale of capital property and consideration attributable to the supply of the goodwill of a business must not be considered in the calculation of the small supplier threshold. However, this calculation must include the total taxable and zero-rated supplies worldwide (other than supplies of financial services under the GST/HST system) of the person and the person’s associates.

A charity or a public institution is considered a small supplier if, as applicable,

• it is in its first year of existence;
• it is in its second year of existence and its gross revenue did not exceed $250,000 during its first fiscal year;
• it has been in existence for more than two years and, in one of the previous two fiscal years, its gross revenue did not exceed $250,000; or
• it is considered a small supplier according to the general definition provided above.

The aforementioned does not replace the provisions under which a public service body whose taxable supplies do not exceed $50,000 per year is not required to register. A charity whose gross revenue exceeded $250,000 in a previous fiscal year may nonetheless be considered a small supplier if its taxable supplies do not exceed $50,000 per year.

“Taxable supply” refers to a supply that is made in the course of a commercial activity.

“Taxi business” means a business carried on in Canada of transporting passengers by taxi (or a similar vehicle) for fares that are regulated under the laws of Canada or a province.