Quebec GST + QST Order Calculator
Calculate tax collected by Etsy on orders shipped to Quebec in CAD ($)
1. Quebec Sales Tax Breakdown: GST, PST & HST Structure
In Canada, sales tax is composed of either a single Harmonized Sales Tax (HST) or a combination of the Federal Goods and Services Tax (GST) plus a Provincial Sales Tax (PST / QST / RST). For deliveries into Quebec, the applicable tax system is GST (5%) + QST (9.975%), totaling 14.975% on retail taxable purchases.
Quebec operates an independent tax administration system through Revenu Quรฉbec. Etsy is registered under the specified QST digital marketplace regime and remits both the 5% federal GST and 9.975% QST directly.
| City / Region | Province | Applied Tax Rate | Tax Mechanism |
|---|---|---|---|
| Montreal | Quebec | 14.975% | GST + QST destination delivery rate |
| Quebec City | Quebec | 14.975% | GST + QST destination delivery rate |
| Laval | Quebec | 14.975% | GST + QST destination delivery rate |
| Gatineau | Quebec | 14.975% | GST + QST destination delivery rate |
| Longueuil | Quebec | 14.975% | GST + QST destination delivery rate |
| Sherbrooke | Quebec | 14.975% | GST + QST destination delivery rate |
2. Canada's Digital Platform Facilitator Rules: How Etsy Collects Tax
On July 1, 2021, the Government of Canada enacted sweeping amendments to the Excise Tax Act, establishing a modern digital economy framework for e-commerce platforms. Under these regulations, digital platform operators like Etsy are legally deemed the "supplier" for sales facilitated through their marketplace made by non-registered third-party sellers.
How Etsy Handles Canadian Sales Tax on Orders to Quebec:
- Automatic Destination Sourcing: When a buyer enters a delivery postal code in Quebec, Etsy automatically applies the 14.975% GST + QST rate to the item subtotal and shipping cost.
- Buyer-Paid Checkout: The buyer pays the tax directly on Etsy's checkout screen. It appears as a distinct line item on their customer receipt.
- Direct Remittance to Authorities: Etsy remits the collected tax funds directly to the CRA (and provincial authorities where applicable). The tax never touches your bank account.
- Zero Withholding from Seller Payout: Because Etsy collects the tax from the buyer over and above your listing price, your seller payout is never reduced by this tax amount.
3. The CRA $30,000 CAD Small Supplier Rule for Quebec Makers
Under Canadian tax law administered by the Canada Revenue Agency, you are considered a Small Supplier if your total worldwide gross taxable revenues (before expenses) from all your commercial business activities do not exceed $30,000 CAD across any single calendar quarter or across four consecutive calendar quarters.
Under $30,000 CAD Annual Gross
You are not legally obligated to register for a CRA GST/HST business number. Etsy will collect and remit the 14.975% GST + QST on all your Canadian sales automatically. You do not need to file recurring GST/HST returns.
Over $30,000 CAD Annual Gross
You must register with the CRA within 29 days of the sale that caused you to exceed $30,000 CAD. Once registered, enter your 9-digit Business Number (BN) into Etsy Shop Manager under Finances > Legal and Tax Information.
4. Claiming Input Tax Credits (ITCs) on Craft Supplies in Quebec
Even if you earn under $30,000 CAD and qualify as a small supplier, voluntary registration for a CRA GST/HST account is often advantageous because it unlocks the ability to claim Input Tax Credits (ITCs).
An ITC allows you to recover every dollar of GST/HST you pay on legitimate commercial purchases required to operate your creative business:
Examples of Eligible ITC Business Expenses:
- • Raw craft supplies (yarn, wood, metal findings)
- • Shipping boxes, bubble mailers & packaging
- • Canada Post / Chit Chats postage fees
- • Workshop tools, 3D printers, laser engravers
- • Commercial studio rent and utilities
- • Software subscriptions (Adobe, Canva, QuickBooks)
5. Quebec Provincial Registration & Municipal Licensing
Operating a creative business in Quebec requires ensuring compliance with provincial trade registries and municipal licensing boards. In Quebec, businesses operating as a sole proprietorship under a name other than their legal personal name must register a Master Business Licence or Business Name Registration with the provincial registry.
Quebec operates an independent tax administration system through Revenu Quรฉbec. Etsy is registered under the specified QST digital marketplace regime and remits both the 5% federal GST and 9.975% QST directly.
6. Shipping Crafts from Quebec: Canada Post, Chit Chats & Cross-Border
High domestic shipping costs are one of the most prominent obstacles for Canadian e-commerce shops. To maintain healthy profit margins when shipping out of Quebec, successful makers utilize a hybrid logistics strategy:
1. Domestic Canadian Deliveries
Utilize Canada Post Solutions for Small Business (Level 4 discounts) or regional courier aggregators. For flat items under 500g and 2cm thickness (such as stickers, art prints, greeting cards, or jewelry), Canada Post Regular Oversized Lettermail ($2-$4 CAD) offers unmatched cost efficiency without tracking.
2. US Cross-Border Shipments (Zero US Sales Tax on Export)
When shipping from Quebec to United States buyers, packages under $800 USD enter the US duty-free under the Section 321 de minimis exemption. Utilize cross-border forwarders such as Canada Post, Chit Chats Montreal, Nationex, Purolator to access domestic USPS rates ($4-$7 USD), saving 50-70% compared to international postal rates.
7. Step-by-Step Walkthrough: Filing CRA GST/HST Returns with Etsy Sales
When you register for a GST/HST Business Number (BN) with the Canada Revenue Agency, you are assigned a recurring reporting period (Annual, Quarterly, or Monthly). For craft makers in Quebec, annual reporting is standard for businesses with under $1.5 million in annual taxable revenue.
How to Complete Form GST34-2 Electronically on CRA My Business Account:
- Line 101 (Sales and Other Revenue): Enter your total gross revenues worldwide across all sales channels. Include your gross Etsy sales, in-person craft market receipts, and direct web shop revenue. Do not subtract Etsy fees, shipping expenses, or returns on this line.
- Line 103 (GST/HST Collected or Collectible): Input only the tax you were directly required to collect outside of marketplace facilitator rules (such as in-person sales at local Quebec craft markets or on a personal standalone website). For Etsy sales where Etsy collected and remitted the tax, this marketplace amount is $0.00 on Line 103 because Etsy is deemed the supplier!
- Line 106 (Input Tax Credits - ITCs): Enter the total GST/HST you paid on all legitimate commercial purchases in Quebec (materials, packaging supplies, craft machinery, shipping postage, listing tools).
- Line 109 (Net Tax): Calculate Line 105 minus Line 108. Because your Line 103 will often be $0 (or very low from occasional in-person markets), and your Line 106 ITCs are positive, Line 109 frequently results in a negative balanceโmeaning the CRA issues you a direct deposit refund!
8. CRA Income Tax Deductions & Capital Cost Allowance (CCA) in Quebec
In Canada, business earnings from your creative shop are reported on federal form T2125 (Statement of Business or Professional Activities), filed alongside your standard personal T1 income tax return. You are legally entitled to deduct all reasonable commercial expenditures incurred to earn business income.
Current Operating Expenses (100% Write-Off)
- Etsy transaction (6.5%), listing ($0.28 CAD), and payment fees.
- Raw craft supplies and packaging materials consumed.
- Shipping postage bought via Canada Post, Chit Chats, or Stallion.
- Etsy Ads and offsite advertisement ad spend.
- Commercial craft liability insurance policies.
- Bookkeeping and accounting software (QuickBooks, Wave).
Capital Cost Allowance (Depreciable Assets)
- Class 8 (20% Depreciation): Durable craft machinery, sewing machines, kilns, 3D printers, woodworking saws, craft fair booth fixtures.
- Class 50 (55% Depreciation): Computer hardware, tablets, studio laptops, digital cameras used for product photography.
- Class 10 (30% Depreciation): Business motor vehicles used for transporting bulky craft booth inventory.
- Work-Space-in-the-Home: Proportion of rent, heat, electricity, home internet based on dedicated craft studio square footage.
9. Selling on Etsy vs. Shopify vs. Amazon Handmade in Quebec
Canadian artisans frequently evaluate whether to expand beyond Etsy onto standalone platforms like Shopify or Amazon Handmade. From a tax compliance standpoint in Quebec, the distinctions are critical:
| Platform | Marketplace Facilitator? | Sales Tax Responsibility | Small Supplier Rules |
|---|---|---|---|
| Etsy Canada | Yes (Certified) | Etsy calculates, collects and remits 100% of GST/HST/PST/QST. | Can sell without GST number if under $30k CAD. |
| Shopify Canada | No (Software Only) | Seller is 100% responsible for registering, configuring tax rates, and remitting. | Must collect tax only once registered with CRA. |
| Amazon Handmade | Yes (Certified) | Amazon Marketplace Tax Collection handles Canadian sales tax. | Operates similarly to Etsy under marketplace laws. |
10. Real-World Case Studies: Sales Tax Math for Quebec Sellers
Scenario A Sale Shipped to a Customer in Quebec
You sell a hand-poured ceramic mug for $40.00 CAD with $12.00 CAD shipping to a customer located in Quebec where the tax rate is 14.975% GST + QST.
* The $7.79 CAD tax is remitted directly by Etsy to the Revenu Quรฉbec (RQ). Your seller deposit is calculated strictly from the $52.00 CAD order value minus Etsy's standard 6.5% transaction, payment processing, and listing fees.
11. CRA & Provincial Audit Protection: Record Keeping for Quebec Sellers
Under Section 286 of the Excise Tax Act, anyone operating a commercial business in Quebec is legally required to maintain adequate books and records in English or French at their place of business or residence in Canada for a minimum of six years from the end of the latest tax year to which they relate.
Required Audit Documentation for Etsy Sellers in Quebec:
- Monthly Etsy CSV Data: Download and archive your Etsy Direct Checkout Payments CSV, Orders CSV, and Monthly Billing Statements from Shop Manager. These provide conclusive legal proof that Etsy collected and remitted the GST + QST (14.975%).
- Purchase Receipts with GST/HST Registration Numbers: To substantiate Input Tax Credits (ITCs) claimed on Line 106, your supplier invoices must display the supplier's legal name, date, invoice total, and their valid 9-digit CRA Business Number (ending in RT0001). Receipts from unregistered suppliers or handwritten slips cannot be claimed for ITCs.
- Vehicle Logbooks for Craft Transport: If deducting automobile travel to post offices, craft fairs, or supply vendors, maintain a mileage log documenting date, destination, commercial purpose, and kilometers driven.
- Inventory Valuation Records: Complete a physical inventory count of raw materials, work-in-progress, and finished craft goods as of December 31 each year to determine Cost of Goods Sold (COGS).
12. Frequently Asked Questions: Etsy Taxes in Quebec
Does Etsy automatically collect sales tax for Quebec buyers?
Yes. Under Canadian digital marketplace legislation, Etsy automatically calculates, collects, and remits the 14.975% GST + QST on all orders delivered to a Quebec postal code.
Do I need a GST/HST registration number to sell on Etsy in Quebec?
No, not until your worldwide gross revenues reach $30,000 CAD across four consecutive quarters. If you are under this threshold, you can sell as a small supplier while Etsy manages tax collection.
Are exports to the United States subject to Canadian sales tax?
No. Products shipped to international buyers outside Canada (such as the US) are classified as zero-rated exports. No Canadian GST, HST, or PST is charged to international customers.
How do I claim Input Tax Credits on raw craft supplies?
Once registered for a CRA GST/HST account, you track the tax paid on business purchases and input the total on Line 106 of your periodic GST/HST return, reducing your net tax liability or generating a cash refund from the government.
Do I need to file a sales tax return if I sell 100% on Etsy?
If you are registered for a GST/HST number, yes! You must file your annual return reporting gross sales on Line 101, zero tax collectible on Line 103, and your ITCs on Line 106 to claim your tax refund.
Can I write off my home craft studio rent and utility bills?
Yes. Under CRA work-space-in-the-home rules, you can deduct the percentage of home expenses (rent, electricity, heat, internet) equal to the square footage of your dedicated craft workspace divided by total home square footage.
What happens if I sell in person at a local Quebec craft fair?
In-person transactions bypass Etsy, so Etsy cannot collect sales tax for you. If you are registered with the CRA, you must collect the 14.975% GST + QST using your own point-of-sale card reader and remit it on your next tax return.