Quebec consumers are now paying less at the checkout for a selected group of foods and household paper products following the removal of the provincial sales tax from qualifying items.
The permanent measure took effect July 15, eliminating the 9.975 per cent Quebec Sales Tax from products that include individually sized frozen desserts, small quantities of sweetened baked goods, prepared fruit and vegetable trays, granola bars, trail mixes, toilet paper and facial tissues.
The change applies only to the QST. Federal Goods and Services Tax continues to be charged where it previously applied, meaning some affected products remain taxable at the federal level.
Quebec estimates that removing QST from the selected products will save a family with two children approximately $45 over a full year. The effect on an individual shopping trip will generally be limited, although the province expects the measure to reduce its tax revenue by more than $100 million annually once fully implemented.
For retailers, the transition required changes to product tax classifications, point-of-sale systems, invoicing procedures and accounting processes. Businesses had to ensure that QST was removed from eligible products while maintaining the correct GST treatment.
Retailers Update Checkout and Product Tax Coding
Implementing the exemption required retailers to identify affected products and adjust their tax treatment within product databases and checkout systems.
Businesses selling the products were advised to review SKU-level tax coding, product master data, point-of-sale configurations, invoicing processes and customer-facing pricing ahead of the implementation date.
The different federal and provincial treatment creates an added layer of complexity. Some products that are now zero-rated for QST purposes continue to be subject to GST, requiring retailers to remove one tax while continuing to collect the other.
Retailers must also account for detailed product, package-size and sales-channel definitions when determining eligibility. Incorrect coding could result in QST being charged on an eligible product or removed from one that remains taxable.
Revenu Québec instructed businesses to ensure that cash registers stopped applying QST to qualifying products after July 15.
Customers who believe QST was charged incorrectly can ask the retailer for a refund or credit. When a retailer is unable to provide one, consumers may apply to Revenu Québec for a rebate within two years of paying the tax.
Which Products Are Covered?
The expanded zero-rating applies to several food categories that were previously subject to QST when sold in certain sizes or formats.
Qualifying frozen products include ice cream, frozen pudding, ice milk, sherbet, frozen yogurt and similar desserts sold in individual portions of less than 500 grams or 500 millilitres.
The change also covers doughnuts, cookies, sweetened croissants, cakes, muffins, pastries, tarts, pies and similar baked goods sold in individual portions weighing less than 230 grams or in packages containing fewer than six units.
Pudding, flavoured gelatin, mousse, flavoured whipped desserts and similar products sold in individual portions of less than 425 grams are also included.
Other qualifying categories include:
- Fruit salads and platters or arrangements of prepared fruit
- Platters and arrangements of prepared vegetables
- Salted or seasoned nuts and seeds, excluding products seasoned primarily with sugar or sugar-based ingredients
- Mixtures composed mainly of rolled oats or other cereals, seeds, nuts or dried fruit, including granola bars and trail-mix-style products
- Toilet paper
- Facial tissues
The eligibility rules and package thresholds are set out in Revenu Québec’s updated guidance for basic groceries.
Package Size Previously Determined Tax Treatment
Several affected categories were governed by rules that could be difficult for consumers to understand.
A single muffin or a package containing fewer than six sweetened baked goods, for example, could receive different tax treatment from a package of six or more. A small individual container of ice cream could also be taxed differently from a larger format.
Prepared produce created another distinction. Whole fruits and vegetables were generally treated as zero-rated basic groceries, while fruit salads, cut-fruit platters and prepared vegetable trays could be subject to QST.
The new measure removes the provincial tax from these selected smaller and prepared formats when they are sold through grocery stores and similar qualifying establishments.
The change simplifies some package-size and product-format rules, although the place of sale can still determine how an item is taxed.
Household Savings Estimated at $45 Annually
Quebec estimates that a family with two children will save approximately $45 over a full year as a result of the expanded zero-rating.
That amounts to an average of $3.75 per month, although the actual benefit will depend on how frequently a household purchases the affected products.
The province projects that the measure will reduce government revenue by $497.1 million over five fiscal years. The estimated cost is $70.1 million during the partial 2026–27 fiscal year, rising to $102.4 million in 2027–28 and $111.2 million by 2030–31.
The figures point to a modest benefit for an individual household and a more substantial cumulative effect across Quebec’s retail market.
The exemption is permanent, providing an ongoing reduction in the final cost of qualifying products.
Restaurants and Vending Machines Remain Outside the Measure
The exemption does not apply in every setting where the affected foods are sold.
The products remain subject to QST when sold at establishments where all or substantially all food and beverage sales are taxable under existing rules, including most restaurants.
Food sold through vending machines or under, or in connection with, catering contracts also remains outside the new zero-rating.
A muffin, frozen dessert or prepared snack purchased from a grocery retailer may therefore receive different provincial tax treatment from an identical product sold by a restaurant or foodservice operator.
GST rules are unchanged, so the removal of QST does not necessarily make an affected product entirely free of sales tax.
The policy removes several package-size distinctions within grocery retail while maintaining separate treatment across restaurant, vending and catering channels.
Toilet Paper and Tissues Receive Broader Treatment
Toilet paper and facial tissues are treated differently from the selected food categories under the new rules.
The paper products are zero-rated for QST purposes throughout the supply chain. Suppliers, wholesalers and retailers registered for QST no longer collect the provincial tax on them, although GST continues to apply.
For the newly covered foods, regular QST collection rules continue elsewhere in the supply chain. The retail zero-rating applies when the products are supplied through grocery stores and similar establishments.
The broader treatment of toilet paper and facial tissues required businesses at multiple stages of the distribution system to update their tax coding and invoicing practices.
Retail Council Welcomes Implementation Approach
Retail Council of Canada welcomed the permanent removal of QST from the selected products, saying the measure reflected recommendations made by the retail industry.
The organization highlighted the implementation timeline, the application of the measure across retail formats and the government’s definition of eligible products. It said the change applies across retail sectors while excluding restaurants.
Those considerations are important for retailers managing large product catalogues and multiple checkout platforms, particularly across grocery, pharmacy and convenience-store operations.
The exemption arrives as governments continue to face pressure over food prices, household expenses and broader affordability concerns.
For Quebec shoppers, the savings will often amount to a few cents on an individual product or several dollars across a larger basket of qualifying goods. Across millions of transactions, the provincial government expects the cumulative value to surpass $100 million annually.
The measure will have a limited effect on most household budgets, but it provides permanent relief on frequently purchased products and removes several tax distinctions that were difficult to explain at the checkout.
