Montreal, Quebec
Montreal Bookkeeping: Handling GST and QST Without Errors
Quebec's dual GST/QST system requires separate tracking and separate summaries. Here's the structure that keeps it clean.
Local guide · GST (5%) and QST (9.975%)
Montreal businesses file two sales taxes: 5% GST federally and 9.975% QST provincially, with their own registration and reporting. Books set up for Ontario HST simply do not translate, and errors compound quickly across a year of transactions.
Beyond tax, Montreal's creative, technology and manufacturing sectors need project-level costing and often bilingual documentation.
What local bookkeeping actually involves in Montreal
GST and QST tracked separately
Separate tax codes and liability accounts are set up for GST and QST on both sales and purchases, so each return summary is produced directly from the file.
Input tax refunds
QST input tax refunds have their own restrictions; purchases are coded so recoverable and non-recoverable portions are distinguishable.
Bilingual records
Supplier invoices and documentation in French or English are both handled; the accounting file itself stays consistently structured.
Services available to Montreal businesses
- Full-cycle bookkeeping and transaction coding
- Bank, credit-card and payment-processor reconciliation
- GST (5%) and QST (9.975%) tracking and filing-ready summaries
- Accounts payable and receivable management
- Payroll journal entries and liability reconciliation
- Month-end close and financial statements
- Cleanup and catch-up bookkeeping for prior years
- Tax-return file preparation for your accountant
- QuickBooks, Zoho Books, Xero, Sage 50 and Excel setup
Montreal tax rates a business owner should know
The numbers below are the Quebec and federal rates that drive day-to-day bookkeeping decisions. They are current as at the update date on this guide — always confirm rates with CRA, Quebec finance and your tax professional before relying on them.
| Item | Rate | What it means for your books |
|---|---|---|
| GST + QSTQST is administered by Revenu Québec on a separate return, and input tax refunds are claimed separately from federal input tax credits. | 5% + 9.975% = 14.975% | QST is administered by Revenu Québec on a separate return, and input tax refunds are claimed separately from federal input tax credits. |
| Combined small-business corporate rate9% federal plus Quebec's 3.2% small-business rate, which requires a minimum of 5,500 paid hours a year to access. | 12.2% | 9% federal plus Quebec's 3.2% small-business rate, which requires a minimum of 5,500 paid hours a year to access. |
| Combined general corporate rate15% federal plus 11.5% Quebec above the small-business limit. | 26.5% | 15% federal plus 11.5% Quebec above the small-business limit. |
| GST/HST registration thresholdRegistration is required once worldwide taxable revenue passes $30,000 in a single calendar quarter or across four consecutive quarters. | $30,000 | Registration is required once worldwide taxable revenue passes $30,000 in a single calendar quarter or across four consecutive quarters. |
| Federal small-business corporate rateApplies to the first $500,000 of active business income of a CCPC; income above that is taxed at the 15% general federal rate. | 9% | Applies to the first $500,000 of active business income of a CCPC; income above that is taxed at the 15% general federal rate. |
| GST/HST filing frequencyAnnual filing under $1.5M of taxable supplies, quarterly from $1.5M to $6M, monthly above $6M. Many small filers elect quarterly to smooth cash flow. | Annual under $1.5M | Annual filing under $1.5M of taxable supplies, quarterly from $1.5M to $6M, monthly above $6M. Many small filers elect quarterly to smooth cash flow. |
Payroll costs on top of wages
QPP instead of CPP
6.40% each
Quebec employees contribute 6.40% (not 5.95%) on earnings between $3,500 and $71,300, plus the 4% second contribution above that.
QPIP parental insurance
0.494% / 0.692%
Employee 0.494% and employer 0.692% on insurable earnings up to $98,000 — a Quebec-only remittance with no federal equivalent.
Health Services Fund
1.65% - 4.26%
Employer contribution scaled by total payroll and sector, with primary and manufacturing employers at the lower end.
EI premium (2025)
1.64% / 2.296%
Employees pay 1.64% on insurable earnings up to $65,700 (maximum $1,077.48); employers pay 1.4 times the employee amount.
What Montreal bookkeeping needs to cover
Monthly reconciliation instead of an annual catch-up
Every bank, credit-card, loan and payment-processor account is reconciled each month. A Montreal business that reconciles only at year-end typically needs 8-15 hours of cleanup per missed year, and files sales tax from figures nobody verified.
GST (5%) and QST (9.975%) coded at the transaction, not estimated later
Tax is coded as each transaction is entered so the GST (5%) and QST (9.975%) summary comes straight out of the ledger. Estimating from bank totals is the most common cause of reassessments, and CRA charges compound daily interest at the prescribed rate plus 4% on arrears.
Supporting records kept for six years
CRA requires books and receipts to be kept for six years from the end of the tax year they relate to. Documents are attached to the transaction in the accounting file, so nothing depends on a shoebox or an inbox search.
Payroll remittances on the CRA schedule
Regular remitters must pay by the 15th of the month after the pay period. Late remittances draw a penalty of 3% to 10% depending on how late, so a remittance calendar is set at onboarding.
A year-end file your tax preparer can actually use
Trial balance, reconciled control accounts, fixed-asset continuity, loan schedules and a working-paper index are handed over together, which removes most of the back-and-forth that inflates year-end fees.
Accounting software that fits Montreal businesses
Pricing below is published vendor list pricing in Canadian dollars per month and moves with promotions and plan changes — treat it as a planning range, not a quote. Jasmin is certified in QuickBooks, Zoho Books and Microsoft Excel, and works day to day in the others listed.
QuickBooks Online
~$22 - $110 / month
The default for incorporated small businesses — EasyStart for one user, Essentials once bills and multiple users appear, Plus for inventory or project tracking.
Xero
~$20 - $75 / month
Unlimited users on every plan, which suits teams where several people enter bills or expenses.
Sage 50
~$60 - $200 / month
Established businesses with legacy desktop files, inventory costing or job costing needs.
FreshBooks
~$25 - $70 / month
Service businesses billing by time and project, where invoicing matters more than inventory.
Microsoft Excel
~$9 - $16 / user / month
Management reporting layered on the accounting file — budget vs actual, cash-flow forecasts and per-project margin.
Related pages: Canada accounting services, accounting software and pricing.
Questions
Montreal bookkeeping FAQs
Need an accountant for your Montreal business?
Book a free introductory consultation and get a clear, written plan for your bookkeeping, month-end close and accounting software.
Or reach out directly: info@jasminpatel.ca · 647-534-7560