LM-1.A - Request for Cancellation or Variation of Registration

LM-1.A - Request for Cancellation or Variation of Registration

General information

Effective date of cancellation or variation of registration for consumption taxes

The effective date of cancellation of registration for consumption taxes is the date as of which the business is no longer required to collect GST/HST and QST on the taxable sales it makes. As of that date, the business is no longer entitled to claim input tax credits (ITCs) or input tax refunds (ITRs) other than those that pertain to activities in respect of which registration has been maintained.

The effective date of variation of registration for consumption taxes is the date as of which the business is required to collect GST/HST and QST solely on the taxable sales it makes in respect of the activities listed in section 2.2. As of that date, the business is no longer entitled to claim ITCs or ITRs other than those that pertain to activities in respect of which registration has been maintained.

Note that a small supplier must have been registered for consumption taxes for at least 12 months before its registration can be cancelled or varied.

Note also that we will confirm to the business that the date entered in section 2.4 is in fact the date that we consider to be the effective date of cancellation or variation of its registration.

Value of the property held at the time of cancellation or variation of registration for consumption taxes

When a businesss registration is cancelled, the business is deemed to have

sold, immediately before cancellation of its registration, the property that it used in order to carry on its commercial activities and for which it was entitled to claim ITCs and ITRs;
collected GST/HST and QST on the fair market value of the property (with the exception of capital property); and
sold its capital property immediately before cancellation of its registration and collected GST/HST and QST equal to the basic tax content of the capital property at that time. The basic tax content is the GST/HST and the QST that should have been paid in respect of the capital property and any improvements thereto, after deducting any amount recoverable (except ITCs and ITRs) and after taking into account depreciation of the capital property.

You are required to remit to Revenu Québec the GST/HST and the QST on those deemed sales with the last return you file as a registrant.

You must also file any GST/HST returns that had not yet been filed as of the cancellation date and remit any unpaid GST/HST collected or to be collected on the taxable supplies made during the period in which you were a registrant.

For more information, refer to the brochure General Information Concerning the QST and the GST/HST (IN-203-V).

Effective date of cancellation or variation of registration for source deductions

The effective date of cancellation of registration for source deductions is the date on which the business permanently ceases to make payments of source deductions and employer contributions because, for example, it no longer has any employees or it has ceased its activities.

The following table shows the deadlines for submitting each of the documents, depending on your situation. For more information, refer to the Guide for Employers (TP-1015.G-V), available on our website at www.revenuquebec.ca.

Filing deadlines for your documents
Documents to be submitted	You permanently cease making remittances (for example, because you no longer have any employees)	You cease operating your business
The remittance slip (together with your payment)	The 20th day of the month following the month of your last remittance of source deductions, employer contributions and compensation tax	The 7th day following the day you cease operating your business
RL-1 slips¹ and form RLZ-1.S-V or temporary RL-1 slips¹ (RL-1.T) and form RLZ-1.ST-V RL-2 slips¹ and the RL-2 summary RL-25 slips¹ and the RL-25 summary	The 20th day of the month following the month of your last remittance	The 30th day following the day you cease operating your business

Definitions

Public service body: A non-profit organization, a charity, a municipality, a hospital authority, a school authority, a public college or a university.

Small supplier: A person whose total taxable sales made worldwide (including sales made by the persons associates) do not exceed $30,000² for the current calendar quarter and the four calendar quarters preceding it. A person generally ceases to be considered a small supplier immediately after the end of the calendar month following the four calendar quarters in which the limit is exceeded. However, a person immediately ceases to be considered a small supplier if the limit is exceeded within a single calendar quarter.

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 its 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.

1. You must also remit copies 2 and 3 of the RL slips to your former employees or former beneficiaries.

2. For public service bodies, the limit is $50,000.