QST rate change effective Jan. 1, 2011

In an attempt to tackle its growing budget deficit, the Quebec government announced an increase to the Quebec sales tax rate (QST) from 7.5% to 8.5% effective Jan. 1st, 2011.

During the transition period from the current rate of 7.5% to the new rate, the following rules apply:

• If QST becomes payable or is paid before January 1st, 2011, the 7.5% QST rate will apply.
• If QST becomes payable on or after January 1st, 2011 without having been paid before that day, the 8.5% QST rate applies.

What does this mean?  Read the Financial Services’ Knowledge Base article which explains the impact.