Tax on a restaurant bill in Québec confuses new owners more than any other topic we get support questions about. Here's how it actually works, and what your POS has to get right.
Federal GST is 5%. Québec's QST is 9.975%. Both apply to most restaurant meals, and — this is the part people miss — QST is calculated on the price before GST, not on top of it. They're calculated in parallel on the same base, then both added. A $100 meal is $100 + $5.00 GST + $9.98 QST = $114.98.
Meals eaten in, takeout, delivery, and most beverages are taxable. Some basic grocery items sold as-is (a loaf of bread, a sealed bottle of water) can be zero-rated, but the moment it's prepared or served, it's taxable. When in doubt, tax it and check with your accountant.
A voluntary tip added by the guest is not subject to GST/QST and doesn't count as your revenue. A mandatory service charge (say, 18% on tables of eight or more) is part of the bill and is taxable. Your POS needs to treat these differently: tip lines outside the tax base, service charges inside it.
Revenu Québec requires restaurants to give a receipt from a certified sales recording system for every transaction, showing GST and QST separately with your registration numbers. Keep this in mind when choosing software — the invoice format isn't optional.
Most small restaurants file quarterly. You remit the tax you collected minus the input tax credits on what you paid (equipment, supplies, rent if applicable). Keep every supplier invoice — that's where your credits come from.
This is general information, not tax advice. Talk to your accountant about your specific situation.
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