Mandatory billing and QST for Quebec restaurants: what owners need to know

Running a restaurant in Montreal means dealing with two tax authorities and one set of billing rules that exists nowhere else in Canada. The federal GST and Quebec's own QST appear on every bill, and most restaurants must produce those bills through a system approved by Revenu Québec. None of it is complicated once it is set up, but getting it wrong is expensive. This is a general overview; confirm the details for your business with Revenu Québec or your accountant.

What sales taxes apply to a Montreal restaurant bill?

Restaurant meals in Quebec are taxable under both the federal Goods and Services Tax (GST), at 5 percent, and the Quebec Sales Tax (QST), at 9.975 percent. The QST is administered by Revenu Québec, Quebec's own tax agency, rather than by the Canada Revenue Agency, so a Montreal owner deals with a provincial tax authority that restaurants elsewhere in Canada never meet.

Does a new restaurant have to register for the QST?

A business is a small supplier if its taxable sales, together with those of any associates, are no more than 30,000 dollars in a calendar quarter or over the four previous quarters. A small supplier does not have to register for the GST and QST, though it can choose to. Registering before you open is the safer course, because tax you should have collected from the first sale is still owed. Check the current threshold and rules with Revenu Québec.

What is mandatory billing in Quebec?

Operators of restaurant establishments in Quebec must send their transaction data to Revenu Québec through a certified sales recording system, and must give customers the bills that system produces. Revenu Québec describes the operators covered as those running a restaurant, a bar or a business that provides catering, so check on its mandatory billing pages whether your type of business is covered. A business that does not comply can face a fine; Revenu Québec's penalties page sets the range.

The point of mandatory billing is to make undeclared sales harder to hide. For an honest owner, it mostly means choosing compatible equipment and giving every customer a proper bill.

What is WEB-SRM?

The original sales recording module (SRM) was a physical box connected to the till. Revenu Québec replaced it with WEB-SRM, a cloud solution. Operators must use a certified sales recording system (SRS) that works with WEB-SRM. Check Revenu Québec's mandatory billing pages for which equipment is still accepted and for the current deadlines.

In practice this means your point-of-sale system matters. Before you sign with a provider in Quebec, ask:

• Is the software certified for WEB-SRM by Revenu Québec?
• Does it handle every type of sale you make: table service, takeout, delivery, catering and events?
• How does it handle tips, refunds and voided items in the billing record?
• What happens if the internet goes down during service?
• Who supports you in French and English when something goes wrong?

What should a compliant restaurant bill show?

A Quebec restaurant bill produced through the mandatory billing system will show the items sold, the GST and QST as separate amounts, the total and the barcode the system generates. Your provider should take care of the format. What you control is the habit: every sale goes through the system, every customer gets a bill, and nothing is rung up outside it.

How do tips fit into restaurant billing in Quebec?

Tips are not part of your taxable sales, but they still need careful handling. Quebec's consumer protection rules require card terminals to calculate suggested tip percentages on the amount before tax, and tips your staff receive have their own reporting rules with Revenu Québec. Make sure your point-of-sale system records tips separately from sales, so your billing, payroll and tax reports agree.

What are common mistakes with QST and mandatory billing?

• Buying point-of-sale software built for another province and discovering it is not certified in Quebec.
• Ringing in sales outside the system for staff meals, events or private bookings.
• Mixing tips into sales, which inflates the tax you report.
• Leaving registration until after opening, when the first months of sales already need tax collected.
• Not keeping records for the period Revenu Québec requires.

Where can a restaurant owner get help?

Revenu Québec publishes guidance for restaurant owners on registration, mandatory billing and WEB-SRM, and certified point-of-sale providers can walk you through setup. An accountant who works with Quebec restaurants is worth the fee in your first year.

Mosey's tools for venues sit alongside your till rather than replacing your certified billing system, so the record Revenu Québec expects stays where it belongs.

More guides for your business:

• Running a bring your own wine restaurant in Quebec: permit basics
• Tips, tip sharing and minimum wage for Quebec restaurant staff

More in the Canadian guides for food businesses.