Home / Blog / Lodging Tax, GST, and QST: The Complete Guide to Short-Term Rentals in Québec

December 2025

Are you renting out your condo in Montreal or your chalet in Lanaudière for short stays? You’ve probably heard about the three mandatory taxes (Lodging Tax, GST, QST). While decorating and welcoming travelers are the fun parts, managing taxes is often seen as a headache.
Yet, fully understanding taxation is not just a legal obligation; it's also a powerful financial lever. Did you know that registering for tax files even before you start renting can save you thousands of dollars? In this Bénoline blog article, we will dissect the fiscal rules of the game in Quebec to allow you to manage your rental income in full compliance and optimize your investment.

Simple, clear, but be careful if you mix short-term and long-term in the same year: specific tax rules apply.

👉 Official Reference: Revenu Québec – Short-Term Accommodation : to consult the current tax laws.

This is what Revenu Québec calls cumulative taxation.

And for extras: cleaning, pets, spa, etc.

• Cleaning fees are subject to GST/QST, but not the Lodging Tax.
• Additional fees (pet, spa, firewood, early check-in, etc.) → Subject to GST + QST, but not the Lodging Tax.

🛠️Example with 3 nights at $200/night + cleaning fee + pet supplement

• → If you are registered: you collect $760 + $141.11 in taxes,
• → you remit the $141.11 to Revenu Québec,
• → but you recover your ITCs on all your purchases for the quarter.
  • Example: $1,000 for cleaning + management fees + electricity = approximately $150 refunded.

The tax implications differ depending on whether your chalet is:

• a personal chalet rented out only a few times, or
  
• a true commercial accommodation.

This distinction primarily depends on your personal use.

For your property (chalet or condo) to be considered a commercial asset in the eyes of Revenu Québec - thus allowing you to recover taxes on your expenses - it must be used primarily for renting.

The percentage of commercial use of your chalet determines if it is considered a commercial asset and if you can recover taxes (GST/QST). If your commercial use is between 50% and 90%, you are eligible, but your tax refunds (on current expenses) can only be made on a pro-rata basis. Furthermore, you are obligated to annually adjust your claims if your actual usage has changed.

👉 Examples:

• If you use your chalet every weekend and only rent it for 3 weeks a year, it remains a personal residence. You will not be able to deduct your commercial expenses or recover taxes.
  
• Conversely, occasional personal occupancy (for maintenance or a few vacations) does not negate the commercial status, as long as the property is available for rent the vast majority of the time (ideally more than 90% to avoid any ambiguity).

📌 Key Takeaway: Days strictly dedicated to maintenance, repairs, or improvement work are not counted as personal use.

Here are the essential proofs and tracking methods to keep. The closer you are to the 50% threshold, the more important this documentation is:

Many owners think that letting Airbnb, Vrbo, or Booking collect and remit taxes is simpler. It is indeed simpler… but it is almost always a financial mistake.

A popular belief is that it is not necessary to register for GST and QST files as long as revenues do not exceed $30,000 over four consecutive quarters (the "small supplier" status). This is true, but it is often a strategic mistake for a real estate investor. 

Why? Because as long as you are not registered, you cannot claim the ITCs (Input Tax Credits) and ITRs (Refunds of the Tax on Inputs).

Why is it important to prepare?

• The effect on buyers: Having to pay GST and QST can deter some buyers, particularly those looking for a simple family second home who do not wish to register for taxes to get reimbursed.

• The appeal of income: Conversely, for an investor, commercial status is an asset. The appeal for short-term rental properties remains very strong in Quebec, as the income generated often covers all or part of the mortgage. For these buyers, tax management is a known administrative formality.

💡 Possible Strategy to Calculate 

The owner can legitimately change the use of the chalet before the sale to facilitate the transaction, provided this change is real (withdrawal of ads on Airbnb, exclusive personal occupancy, or signing a long-term lease). The goal is to reflect the true use of the property at the time of sale.

💡 Bénoline Advice: Financial impacts can be major. Always consult your accountant before listing the property for sale to define the most advantageous strategy (selling taxable, changing use and self-assessing, or selling tax-exempt) and secure your transaction.

If you are registered for GST/QST, you can recover the taxes paid on a wide variety of expenses related to the operation of your tourist accommodation.

These refunds are very important in the first years of activity, especially when purchasing or constructing a real estate asset for short-term rental, such as a chalet. They remain very relevant afterward for the main sources of expenses, which are cleaning and repairs.

Depending on your business volume, you can declare monthly, quarterly, or annually.

💡 Bénoline Tip: Opt for a quarterly declaration. This allows you to recover your tax returns (on your electricity, internet, snow removal expenses, etc.) four times a year, thus improving your liquidity, rather than waiting for the end of the year.

Lodging Tax, GST, and QST are not just a constraint: they are a significant fiscal opportunity when you register from the start. Don't be like the majority of owners who discover too late that they left tens of thousands of dollars on the table.
Register now, recover your taxes on all your purchases, and remember that every dollar of tax recovered is one dollar more in the profitability of your investment.

👉 Also read:

• Permits and Regulations for Short-Term Rentals in Montreal: The Easy Guide 2025
• Regulatory Guide 2025 for Cottage Rentals in Quebec: The Easy Guide

• Early Registration: Register for tax files even before you have your first tenant to claim taxes on your startup costs (furniture, notary, renovations).

• Lodging Tax: It is generally 3.5% per night in most tourist regions of Quebec.

• Rigorous Tracking: Keep an accurate log of rented days versus personal use days to justify your commercial status in case of an audit.

• Platform Fees: If you let Airbnb manage taxes, ensure you fully understand which amounts are being remitted on your behalf to avoid double payments or oversights.

• Mandatary: You can designate a mandatary (like an accountant) to act on your behalf with Revenu Québec.

Q: Do I have to pay taxes if I only rent my chalet for a few weeks a year?

A: If you rent for less than $30,000 per year, you are a "small supplier" and are not obliged to register (except for the Lodging Tax which is often collected by the platform). However, you will not be able to recover taxes on your expenses.

Q: Can I recover the GST/QST paid on the purchase of my rental condo?

A: Yes, if the property is used more than 50% (ideally 90%+) for short-term commercial rental, you can claim the taxes on the purchase via ITCs/ITRs. Be careful about the impacts upon resale!

Q: Does Airbnb remit the taxes directly to me?

A: By default, no, Airbnb remits them to Revenu Québec. But if you enter your tax numbers into your Airbnb account, the platform will remit the collected taxes to you, and it will be up to you to remit them to the government.

Q: What is the difference between tourist accommodation and a principal residence?

A: A principal residence is where you live. Tourist accommodation is lodging offered for short-term rental (chalet, apartment) for remuneration. The tax and municipal implications are very different.

Q: Does voluntary tax registration have disadvantages?

A: None, apart from having to file quarterly declarations (5-10 minutes with a good tool).