The lack of strictness in the collection of Quebec sales tax (QST) on foreign products and services, especially those purchased online, deprives the province of hundreds of millions of dollars in tax revenue each year, according to the report. auditor general filed Wednesday in the National Assembly.
In 2020 alone, Quebec neglected approximately $ 365 million by not conducting the evaluations and follow-up necessary to ensure that QST in such products or services.
It is more urgent for the Quebec government to ensure that this tax is collected by suppliers outside the province and that the proceeds are sent here, as e-commerce continues to grow in popularity.
The annual value of purchases made by Quebec consumers online rose from $ 6.6 billion in 2014 to $ 20.9 billion in 2020, according to data provided in the Auditor General’s report.
The new provisions, which took effect on July 1, 2021, ensure that QST should now be imposed on goods sold through distribution platforms.
However, the Auditor General believes that Revenu Québec should improve its controls, as well as its follow-up with the Canada Border Services Agency, to ensure that QST under this new provision.
He reminded me more the misunderstanding of QST also creates inequality for businesses in Quebecwho collect taxes and therefore display their products at higher overall prices.
More details are next.
Source: Radio-Canada
