You may, as an individual (employee or member of a partnership), obtain a rebate of the Québec sales tax (QST) you paid on certain expenses that you deducted in your income tax return, in accordance with the provisions of the Taxation Act. The rebate is granted only if you incurred the expenses while your employer or the partnership of which you were a member was registered for the QST.
Your rebate application must be filed with your income tax return within four years after the end of the calendar year in which the expenses were incurred.
Please note that the amount of a QST rebate must be included in your income for the year in which the rebate is received, provided the taxes were included in the amount of expenses claimed in your income tax return. However, if the rebate is related to capital cost allowance claimed with respect to property, the amount of the rebate must be subtracted from the undepreciated capital cost (determined according to the class of the property) at the beginning of the taxation year in which the rebate is received.
Information
You must indicate the taxation year of the income tax return to which the rebate pertains. Also indicate your employer or partnership information of which you were a member.
Expenses deducted* on your income tax return
If you were an employee, enter the expenses that you incurred to earn employment income and that you deducted on line 207 of your income tax return, in accordance with the provisions of the Taxation Act. You must have incurred these expenses while your employer was registered for the QST.
If you were a member of a partnership, enter the expenses that you incurred in the practice of your profession or in the operation of your business and that you deducted in your income tax return, in accordance with the provisions of the Taxation Act, but that were not included in the partnership’s income statement. You must have incurred these expenses while the partnership of which you were a member was registered for the QST.
Professional dues
Whether you were an employee or a member of a partnership, you may obtain a rebate of the QST you paid in respect of annual dues to a professional or artistic association. The amount entered on this form is the amount from line 397.1 of the income tax return.
* You may not claim the QST rebate in respect of any expenses related to allowances that were paid by your employer or by the partnership of which you were a member and that were considered reasonable under the Taxation Act at the time they were paid.
Expenses that do not give entitlement to a rebate
- the expenses related to the allocations paid to you by your employer or the partnership that you were a member of and that were not included in your income;
- annual dues paid to a professional or artistic association, for which you received or are entitled to receive a reimbursement from your employer or the partnership of which you were a member;
- expenses incurred for zero-rated property or services, such as insurance premiums and interest;
- expenses incurred for exempt property or services, such as rent for a dwelling, and licence and registration fees with respect to a motor vehicle;
- expenses on which you paid no QST;
- expenses incurred for property or services acquired from suppliers that were not registered for the QST;
- expenses that you deducted while your employer or the partner- ship of which you were a member was not registered for the QST.
Capital cost allowance
Enter the amount you claimed as capital cost allowance with respect to an automobile, a musical instrument or an aircraft. The related QST rebate must be subtracted from the undepreciated capital cost (determined according to the class of the property) at the beginning of the taxation year in which the rebate is received.
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