FPZ-2034.CD - Detailed calculations

FPZ-2034.CD - 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.

This form provides general information to help you fulfil the fiscal obligations as a registrant. The information does not constitute a legal interpretation of the Excise Tax Act, the Act respecting the Québec sales tax or their regulations.

See the brochure entitled General Information Concerning the QST and the GST/HST (IN-203-V) for particulars concerning the simplified accounting methods and other information, or contact Revenu Québec.

Penalties and interest

Under the QST system, anyone who neglects to file a return is liable to a penalty of $25 per day until the return is filed, to a maximum of $2,500. In addition, 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.

Interest is charged at the rate set by regulation on all outstanding amounts.

It is a serious offence to file a false return.

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.

Signature

Returns must be signed by the registrant or by the registrants authorized representative.

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.

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 you are claiming a refund under the other law. Revenu Québec may refuse 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 required for a previous reporting period.

Explanatory notes

GST/HST

Box 101 – Enter the 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 – 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 respectively).

Box 104 – Enter 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 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 or, if you are a builder, GST credited 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 your 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. If you credited a GST/HST amount to a non-resident respecting the supply of installation services in Canada, you may also include that amount in box 107; in this case, the rebate application of the non-resident must be enclosed with your return. If you completed form FP-2074-V, Election or Revocation of Election Respecting the Quick Method of Accounting, and have obtained a written confirmation of your election, you may claim the 1% credit applied to the first $30,000 (including GST/HST) of your taxable supplies.

Box 110 – If you file annually and you paid GST/HST in instalments, enter your instalments in this box.

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 HST you are required to report and pay. Enter the result in box 114.

Box 115 – Determine the taxable value of supplies of services or intangible personal property you imported or of certain goods subject to the dropshipment rules. Calculate the GST or HST you are required to report and pay. Enter the result in box 115.

QST

Box 203 – Enter the 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 collectible on any taxable property and services brought into Québec on which QST must be paid. In addition, enter the total tax for 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 (box 214).

Box 204 – Enter 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 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, gasoline, electricity and meals, 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 amounts that may be added to the ITRs claimed in box 206. Examples of such amounts are 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) or, if you are a builder, QST credited to the purchaser of new housing (where the purchaser is an individual). In the latter case, the purchasers rebate application must be enclosed with your return. You may also include in box 207 the QST entitling you to ITRs respecting acquisitions of immovables, which you reported separately in box 214. Also include any QST paid in error. You generally have two years in which to claim such an amount. However, do not include QST paid on automotive vehicles purchased, for resale, on or after May 1, 1999, as it must be recovered from the supplier. If you completed form FP-2074-V, Election or Revocation of Election Respecting the Quick Method of Accounting, and have obtained a written confirmation of your election, you may claim the 1% credit applied to the first $32,850 (including GST/HST and QST) of your taxable supplies.

You may not make another claim respecting the amounts entered in this box, and you must keep all information pertaining to the amounts.

Box 210 – If you file annually and you paid QST in instalments, enter your instalments in this box.

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 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. Enter the result in box 214.