VD-358-V: Québec Sales Tax Rebate for Employees and Partners

If you’re an employee or a member of a partnership, you can use the VD-358-V form to claim the Québec Sales Tax (QST) rebate on certain work-related expenses you paid in 2020 (like travel, entertainment, and supplies). The VD-358-V is similar to the federal GST370: Employee and partner GST/HST rebate application, which is used to claim a rebate on GST/HST.

You can claim the QST rebate if:

  • Your employer or partnership is registered for QST
  • Your employer isn’t listed as a financial institution (such as a bank, credit union, an insurer, etc.)
  • You paid QST on expenses you’re deducting, like business income, employment expenses, or professional dues

For the QST rebate on professional dues or dues paid to an artists' association, make sure:

Notes:

  • You can’t claim a QST rebate for the personal portion of expenses you paid.
  • If you claim the QST rebate this year, the amount you receive must be claimed as other employment income on next year’s tax return. For example, if you’re claiming the QST rebate on your 2020 tax return, and it is allowed by Revenu Québec , you’ll need to report this amount on your 2021 tax return as other employment income.

There are several types of eligible work-related QST expenses, including:

  • Travel expenses (meals, beverages, accommodation, transportation)
  • Entertainment expenses (meals and beverages, tickets)
  • Cost of supplies (postage, telephone charges, cell-phone charges, internet connection charges)
  • Equipment rental cost
  • Musical instruments and eligible work tools (maintenance costs, rental cost, purchase price)
  • Motor-vehicle expenses (fuel, maintenance and repairs, and leasing cost)

For a complete list of eligible expenses refer to Revenu Québec’s website.

You can also claim a QST rebate on the capital cost allowance (CCA) you’re claiming for a motor vehicle or musical instrument you used. Generally, you can’t deduct the entire cost of a property (such as vehicle or a musical instrument) you used to earn income. However, you can claim a percentage of the property’s cost known as depreciationor capital cost allowance (CCA).

Note: To claim a QST rebate on the CCA of a vehicle or musical instrument you used, select Yes to the question, If you used a motor vehicle or musical instrument to earn employment income, do you want to claim a capital cost allowance (CCA)? on the VD-358-V page. H&R Block’s tax software will automatically calculate the applicable QST rebate based on the information you entered on your employment expenses page (such as the T777/TP-59).

Before you complete the VD-358-V page, be sure to enter your work-related expenses on the applicable page in H&R Block’s tax software. Depending on whether you’re an employee or a partner, you’ll need to complete one of the following pages:

Your situation

Page to complete in the software before completing the VD-358-V page

An employee

(and your employer is a GST/HST registrant)

Note: All of the above forms are combined with the federal T777: Employment expenses form in H&R Block’s tax software.

A member of a partnership that’s a GST/HST registrant and you paid for eligible expenses which included the GST/HST

T2125/TP-80-V: Statement of Business or Professional Activities

Follow these steps in H&R Block's 2020 tax software:

Before you begin, make sure you told us that you lived in Québec on December 31, 2020.

  1. On the PREPARE tab, click the IN THIS SECTION icon.

  2. Click the Add This Topic button under the option indicating that you had employment expenses OR that you had income from self-employment.

  3. Click the EMPLOYMENTicon. You'll find yourself here:



  4. Under the CREDITS AND REBATES heading, click the checkbox labelled Québec sales tax rebate for employees and partners (VD-358-V), then click Continue.

  5. When you arrive at the page for form Québec sales tax rebate for employees and partners, enter your information into the tax software.