In order to simplify the determination of the net tax for certain public service bodies, the QST system allows for the use of a quick method of accounting. Under this method, qualifying public service bodies, including municipalities, determine their net tax remittance by applying a prescribed rate to their total receipts from taxable supplies. Entities that choose to use this method do not need to determine the actual QST collected on their supplies and paid on their acquisitions.
In 2014, when municipalities were granted a partial QST rebate, the prescribed rate for a municipality using the quick method was set at 5.7%. Effective for reporting periods commencing after June 30, 2016, the prescribed rate for municipalities will increase to 7.3%, which is same rate used by all other qualifying public service bodies employing the quick method of accounting to determine their net tax remittance.
The Québec Information Bulletin announcing this change for municipalities may be accessed at the following link: