Québec: New Tax Obligation for Building Service Businesses and Subcontractors Beginning on January 1, 2021
17 December, 2020 -
By Luisa Almazan
Québec: New Tax Obligation for Building Service Businesses and Subcontractors Beginning on January 2, 2021.
The Revenu Quebec announced the new tax obligation for maintenance work, covered by the Decree respecting building service employees in the Québec region and the Decree respecting building service employees in the Montréal region. These obligations are introduced to avoid problems such as working under the table.
Attestations necessary for the validity of contracts:
- Attestation is valid until the month it was issued three months after.
- If the attestation expires before the work is done, a new attestation has to be requested.
Building service subcontractors:
- Hold a Valid Attestation form revenue Quebec & a copy given to the building service: the attestation must be valid at the beginning until the end of the work. This also applies to contracts concluded before 1 January 2021 and which are subject to these new commitments. The obligation begins when the work begins.
Building service businesses:
- Must hold a valid copy of the subcontractor. (This also applies to contracts concluded before January 1, 2021, and are subject to these new obligations)
- Mandatory verification of the Attestation. (This also applies to contracts concluded before January 1, 2021, and are subject to these new obligations)
- Report all amounts accounted for in each calendar quarter ending March 31, June 30, September 30, and December 31 of the year. (the last day of the month and indicating the quarter it ended)
The new obligations are:
- If a contract totals $10 000 or more (taxes not included) between the contractor, subcontractors, and a company. For a full year (for contracts before 1 January 2021, the proportion of maintenance work costs cannot be taken into account before that date)
- A building service contract of unspecified duration continues or is entered into by both parties after January 1, 2021, regardless of its value.
For more information about the application process, click here.