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.