• FP-2620 - Election Respecting the GST/HST and QST Reporting Period

General Information

Incorrect reporting period

The registrant must file GST/HST and QST returns in accordance with the reporting period assigned. If the actual threshold amount does not correspond to the amount indicated on the registrant's registration form and, as a result, the reporting period that Revenu Québec has assigned is incorrect, contact Revenu Québec to have the reporting period changed. (Do not use this form to change an incorrect reporting period.)

General rule

The registrant may elect to change the reporting period to monthly, quarterly or annual, provided the eligibility requirements based on the threshold amount (see the table on page 1) are met. The GST/HST and QST reporting periods will be the same and will apply to all of the registrant's branches and divisions.

Complete the work chart in Part 3 to determine the threshold amount. Next, consult the table in Part 2 to determine the reporting periods with respect to that amount.

Any registrant that is a listed financial institution is assigned an annual reporting period, which will remain in effect until the registrant makes an election to modify it. To modify this reporting period, or any subsequent election of a reporting period, the listed financial institution must complete this form.

A listed financial institution can revoke a previous election by completing form FP-2620.1-V, Revocation of the Election Respecting the GST/HST and QST Reporting Period of a Listed Financial Institution. The institution will then be assigned an annual reporting period.

Note that a listed financial institution can no longer elect to have different reporting periods with respect to the GST/HST and the QST.

Special cases

• If the registrant is a charity, the registrant may elect to have a monthly, quarterly or annual reporting period.
• If the registrant carries on activities related to the garment industry, its reporting period for the QST must be monthly. The registrant may elect to modify the GST/HST reporting period in accordance with the general rule (see the table on page 1).

When to file the election and effective date

You must file the registrant's election concerning the reporting period

• no later than three months after the beginning of the registrant's fiscal year, where the registrant is electing to change from quarterly to annual filing; or
• no later than two months after the beginning of the registrant's fiscal year, in all other cases.

The change in the reporting period will take effect on the first day of the fiscal year.

Duration of the election

The new reporting period will remain in effect for a minimum of one year and until the registrant elects to change it or until the threshold amount for a fiscal year or quarter exceeds the maximum for the reporting period chosen (see the table on page 1).

Definitions

For the purposes of this form, the term "sale" means the delivery of a property or the supply of a service.

The term "threshold amount" means the total annual taxable sales made in Canada by a business, including zero-rated sales (i.e. those that are taxable at 0%) and the sales of all its associates, if applicable. However, the threshold amount does not include income related to goodwill, financial services, sales of real property, zero-rated exports or taxable supplies made outside Canada. The threshold amount for a fiscal year must be based on the actual performance for the previous year.

The term "charity" means a registered charity or registered Canadian amateur athletic association within the meaning of income tax legislation, but does not include a public institution. The term "public institution" means a registered charity (within the meaning of income tax legislation) that is a school authority, a public college, a university, a hospital authority or a person determined by the Minister of National Revenue to be a municipality for the purposes of the GST/HST and the QST.

A registrant is engaged in activities related to the garment industry if the registrant manufactures clothing (excluding footwear and jewellery) in whole or in part, or has clothing manufactured in whole or in part, except if

• the clothing is used solely in the context of the registrant's activities;
• the registrant sells the clothing solely to one person that purchases it for purposes other than resale; or
• the registrant makes only customized clothing for individuals.

The term "associated person" means the following:

• a corporation that is associated with another corporation pursuant to the rules set out in the income tax legislation;
• a person (other than a corporation) that is associated with a corporation and that controls the corporation directly or as a member of a group of persons, each of which is associated with each of the other persons;
• a person that is associated with a partnership, where the total share of the profits of the partnership to which the person and all other persons that are associated with the person are entitled is more than half of the total of the partnership's profits (or would be more than half of the total profits if the partnership had profits);
• a person that is associated with a trust, where the total value of the person's interest in the trust and all the interests of the person's associates in the trust is more than half of the total value of all interests in the trust;
• a person that is associated with another person, where they are both associated with the same third party.

Filing the form

Send the duly completed form to Revenu Québec at one of the following addresses:

For more information, visit Revenu Québec's website at www.revenuquebec.ca.