Quebec: handling mileage with Revenu Québec alongside CRA
Quebec employers and workers deal with two tax authorities. How to satisfy both.
The two-jurisdiction reality
In every province except Quebec, employees file a single T1 with CRA and employers file T4s, T2200s and T777s federally.[^rq-tp643-87] In **Quebec**, an additional layer applies: Revenu Québec administers Quebec Income Tax, the QPP, the QPIP and a parallel set of forms.
For mileage, the practical implications are:
Federal side (CRA)
- **Allowance to employees**: same 72¢ / 66¢ reasonable rate (Yukon/NWT/Nunavut +4¢ does not apply in Quebec). - **Forms**: T2200 from employer, T777 from employee, attached to T1 federal. - **GST/HST on fuel element**: applies to mileage allowances paid to employees, recoverable by GST/HST-registered employers using Quick Method ITCs or detailed records.
Quebec side (Revenu Québec)
- **Allowance to employees**: aligned with federal reasonable rate, but verify each year against Revenu Québec's published bulletin (usually identical to CRA). - **Forms**: TP-64.3-V (employer declaration, Quebec equivalent of T2200) and TP-59-V (employee employment expenses, Quebec equivalent of T777), attached to TP-1 Quebec return. - **QST on fuel element**: separate from GST/HST. Quebec's QST is 9.975%; combined with 5% federal GST, the effective sales tax in Quebec is 14.975%. Both can be reclaimed proportionally if the employer is a GST/QST registrant.
Practical workflow for Quebec employers
1. **One mileage policy, two form sets.** The reimbursement rate is the same; the year-end paperwork is doubled. 2. **Issue T2200 + TP-64.3-V together.** Both signed by the employer at year-end. Make this part of the Q4 close. 3. **Coach employees on filing both T1 and TP-1 with their respective T777/TP-59-V.** Many Quebec employees use combined tax software that propagates entries automatically; verify if your team uses paper. 4. **Track GST and QST recovery separately.** QST input refunds (RTI) are filed alongside QST returns; GST input tax credits (ITCs) on the federal return.
Quebec-only details to watch
- **Source deductions**: Quebec uses a separate withholding table (TP-1015.3-V). A non-reasonable allowance (e.g. flat monthly) becomes taxable income subject to both federal and Quebec source deductions, plus QPP and QPIP. - **CCA on vehicles**: cost ceilings and CCA rates align federally and provincially, but the parallel computation must be filed for Quebec (Schedule G of TP-1). - **Per-diem rules**: Quebec generally aligns with federal per-diem rules but publishes its own bulletin annually. Check IMP.40 of Revenu Québec.
Tools and exports
Quilometragem exports CSVs that can be filtered by employee for both federal and Quebec filings. The receipt PDFs are accepted by both CRA and Revenu Québec; the integrity hash satisfies both authorities' contemporaneous-log requirements.
Common pitfalls
- Filing only T2200 federally and forgetting TP-64.3-V for Quebec. Result: Revenu Québec disallows the deduction at the provincial level. - Failing to claim QST input refunds on the fuel element. Significant in Quebec given the 9.975% QST. - Mixing two calculations of business-use percentage for federal and provincial. Use one consistent figure across both filings.
Bottom line
Quebec doesn't dramatically change the per-km mechanics, but it doubles the paperwork. A clean Q4 process that issues both forms simultaneously and a tool that exports a single CSV reusable for both filings cuts the additional administrative burden by 80%.