Since May 1, 2020, anyone wishing to rent out their residence must first register with the Corporation de l’industrie touristique du Québec (CITQ). Displaying the registration number in ads is mandatory. Under certain conditions, a person can rent out their primary residence on sites like Airbnb, regardless of the number of nights. However, before offering their secondary residence, such as a cottage, an owner must obtain a classification certificate to become a tourist residence. »1
So, before acquiring or converting a property for the purpose of offering it as a short-term rental, we recommend that you consult the following information. For renting a primary residence, here is the link to consult:
Indeed, “you must register for the GST and QST if your total sales (rental income) exceed $30,000 during a given calendar quarter (3 months) or for all four calendar quarters (12 months) preceding it”. Of course, you can generate much more than $30,000 per year! Once registered, your tenants will have to pay the GST/QST on the rental of your cottage. Fortunately, you are not the one who will have to pay them 😅
Another good news: registering for the GST and QST files will allow you to recover all the GST/QST paid in connection with the expenses/maintenance/renovation of your cottage 🥳 So, when you pay taxes on the purchase of a wall-mounted heat pump, on the maintenance of your lawn, on toilet paper, etc., you will then be able to recover these taxes from the government during your quarterly declarations (every 3 months). So, even if you were planning to make less than $30,000 annually, it would still be advantageous to register for the GST and QST files!!!
Once this step is completed, you will be able to officially declare yourself the owner of a small business
