Tax memo: QST rate increasing on January 1, 2012

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On January 1, 2012, the Quebec Sales Tax (QST) rate will increase from 8.5% to 9.5%.

Moveable and immovable property

For a movable property or a service, a taxable supply will be subject to the 9.5% rate on any portion of consideration that becomes due after December 31, 2011, and is not paid before January 1, 2012. This also applies to supplies of immovable property made other than by way of sale (such as a lease or licence).

For an immovable property, a taxable supply by way of sale will be subject to the 9.5% rate if made pursuant to a written agreement concluded after December 31, 2011, if both possession and ownership are transferred after December 31, 2011.

Read our Tax memo to learn more about special transitional rules and how to prepare.