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

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.

In addition, note that Revenu Québec will write to the business to confirm that the date entered in section 2.4 is in fact the date that Revenu Québec considers 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 business's 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 filed by the business before its registration was cancelled.

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

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

Sale of a business

If a business or part of a business is sold, the acquirer and the supplier may be entitled to make a joint election to have the GST/HST and QST not apply to the sale. To make the election, both the acquirer and the supplier must complete form FP-2044-V, Election Respecting the Acquisition of a Business or Part of a Business.

Effective date of cancellation of registration for source deductions

The effective date of cancellation of registration for source deductions is the date on which the business permanently stops making payments of source deductions and employer contributions because, for example, it no longer has any employees or it has stopped operating.

The following table shows the deadlines for submitting each of the documents to Revenu Québec, depending on the business's situation. For more information, refer to the Guide for Employers (TP-1015.G-V), which is available on Revenu Québec's website.

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

Certification

This form must be signed by the individual (in the case of an individual in business) or by one of the following people:

• a member of a partnership

• a trustee of a trust

• the president, vice-president, secretary or treasurer of a corporation

• an authorized person

Authorized person

A corporation can authorize a person to represent it by providing a resolution of the board of directors or a unanimous shareholder agreement, as applicable, that authorizes the person to sign this form on its behalf.

In other cases (for example, an individual in business or a partnership), the business can authorize a person to represent it by providing a power of attorney or filing form MR-69-V, Power of Attorney, Authorization to Communicate Information, or Revocation (on which the business must specify that the person is authorized to sign this form on its behalf).

Definitions

Business

A sole proprietorship, partnership, corporation (also called a company or legal person), trust or organization.

Public service body

A non-profit organization, charity, municipality, hospital authority, school authority, public college or university.

Small supplier

A person whose total taxable sales made worldwide (including sales made by the person's associates) do not exceed $30,000² for the current calendar quarter and the four calendar quarters preceding it. Total taxable sales do not include amounts from GST and QST, financial services, sales of capital property and the goodwill of a business. A person generally stops being 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 stops being 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.

Taxi business

A business carried on in Québec of transporting passengers:

• by taxi or other similar vehicle for fares that are regulated by the Act respecting remunerated passenger transportation by automobile;

• by motor vehicle, for a fare, within and in the vicinity of the territory of a municipality if the transportation is organized or coordinated through an electronic platform or system.

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