Rate Increase for Quebec’s Sales Tax on Automobile Insurance
Tax Development Dec 05, 2014
Tax Development Dec 05, 2014
On December 2, 2014, Quebec announced an increase in the tax rate applicable to automobile insurance premiums. While the current general rate of 9% applied to most insurance premiums, a reduced rate of 5% had been allowed for insurance covering material damage to automobiles. With the aim to balance the province’s budget for 2015-2016, Quebec can no longer support this reduced rate. This change will go into effect on January 1, 2015.
Those required to collect the tax will have until March 31, 2015 to remit amounts collectible on automobile insurance premiums payable on or after January 1, 2015. This includes both monthly filers and those with a quarter filing period ending January 31, 2015.