The short answer
QST on freight applies to fewer routes than most carriers think. You charge 9.975% QST, on top of 5% GST, only when the pickup and the delivery are both in Quebec. On every other route, either your invoice shows no QST or the move is zero-rated.
Every route in and out of Quebec
This follows Revenu Québec's summary table.
| Pick up | Delivery | GST or HST | QST |
|---|---|---|---|
| Quebec | Quebec | GST 5% | 9.975% |
| Elsewhere in Canada | Quebec | GST 5% | Not on your invoice |
| Outside Canada | Quebec | Zero-rated | Zero-rated |
| Quebec | Ontario, NS, NB, NL or PE | HST of the destination | Doesn't apply |
| Quebec | Other provinces and territories | GST 5% | Doesn't apply |
| Quebec | Outside Canada | Zero-rated, from $5 | Doesn't apply |
How the amounts work
GST and QST are each calculated on the price before tax. QST isn't charged on the GST.
On a $4,200 load from Montréal to Québec City:
| Line | Amount |
|---|---|
| Freight charge | $4,200.00 |
| GST 5% | $210.00 |
| QST 9.975% | $418.95 |
| Total | $4,828.95 |
Moves into Quebec from another province
These cause the most confusion. Revenu Québec treats the service as supplied outside Quebec. So a carrier hauling from Ontario to Montréal charges GST only.
That doesn't always end the QST question. A customer resident in Quebec that buys the service must work out and pay the QST itself. The exception is a customer that buys the service to use only in its commercial activities. That's the customer's job, not yours.
When a move inside Quebec takes no QST
A trip between two places in Quebec can be zero-rated if it's part of a continuous movement. That movement can go out of Quebec or come from outside Canada:
- On the way out of Quebec. The goods are leaving Quebec, the service is part of a continuous movement out, and the charge is $5 or more.
- On the way out of Canada. The same conditions apply, and the shipper also gives you a completed form VD-197-V.
- On the way in from abroad. You need documents that show a continuous movement from outside Canada.
GST has its own conditions on these moves, including a shipper's declaration for the Canadian leg of an export.
What to put on the invoice
Show GST and QST on separate lines with their rates, along with your GST/HST and QST numbers. The invoice generator does this when the route is inside Quebec. The calculator checks any route.
This guide covers QST on the freight service itself. Other Quebec rules, such as QST on buying a heavy vehicle, are separate.
Sources
- Revenu Québec: Freight Transportation Services
- Revenu Québec: Domestic Inbound Services, with the summary table
- Revenu Québec: Domestic Outbound Services
- Revenu Québec: Basic Rules for Applying the GST/HST and QST
This guide doesn't replace the law or professional advice, and rules change. Check the sources above before you rely on it.