On a number of occasions, my colleagues and I have had some unpleasant experiences in contractual situations involving the Tax Act. I think that if people were better informed about the GST and the QST, it would be beneficial for everyone. In addition to avoiding misunderstandings, we could replace these contentious situations with relationships of exchange and mutual assistance based on the principles of our current laws. So I decided to write an article for reference.
A self-employed person or “small supplier” (that is, a person who operates a sole proprietorship, under his first and last name or under a corporate name, eg, Agence Thaly), whose number is business is greater than $ 30,000 – in a quarter or a period of four consecutive quarters or annually – must be recorded in the Revenu Québec tax files.
Once registered, he is required to collect the goods and services tax (GST) and the Québec sales tax (TVQ). In addition, if he sells taxable products, in particular, cosmetics, make-up and airbrush equipment, the self-employed person must charge the taxes mentioned above, as these products are subject to the GST and the QST. .
Since the registered self-employed worker becomes an agent of Revenu Québec, he is required to collect taxes on both the goods sold and the services rendered. It’s the law. In case of non-collection of taxes, Revenu Québec will claim them. Thus, it is necessary to pay the taxes to any person (registered in the files of the taxes) which claims them, because this last must respect the deadlines of payment, otherwise it will cost a penalty of 15{098e99b8874fbae695d4c3bd51bfac1a665db8b840bb05893f2d65ad1fcff796} to him, plus the interests accrued! I remind you that it is everyone’s responsibility to ask beforehand if GST and QST are added to the selling price of goods and / or services rendered.
I would like to add that a makeup artist with a turnover of $ 30,000 or less can register and take advantage of tax files. On the one hand, some people take companies more seriously when they are registered in the tax files. On the other hand, when you start as a self-employed worker, the expenses are often higher than the cash inflow! In addition, it prepares us gently to make our tax reports, to be ready for the big day when we will have no choice to prepare them! In fact, when you register, each year, or every three months or every month (depending on the method of repayment chosen) you must file a return, which includes the entries and withdrawals of money. At the end of the day, the total taxes paid are deducted from those collected. If necessary, pay or cash the difference (the overpayment). Finally, filing a tax return is in our favor, even if it takes time, patience and good accounting software. Disappointments that passengers, fortunately!
Source: Business start-up and taxation, Revenu Québec, 2005.

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