# Quebec: handling mileage with Revenu Québec alongside CRA

> Quebec employers and workers deal with two tax authorities. How to satisfy both.

**Author:** Emily Thompson — Canadian Tax Specialist (CRA)  
**Published:** 2026-04-06  
**Updated:** 2026-04-28  
**URL:** https://quilometragem.com/blog/quebec-handling-mileage-with-revenu-quebec-alongside-cra

**TL;DR:** The two-jurisdiction reality In every province except Quebec, employees file a single T1 with CRA and employers file T4s, T2200s and T777s federally.

- In every province except Quebec, employees file a single T1 with CRA and employers file T4s, T2200s and T777s federally.
- Quebec's QST is 9.975%; combined with 5% federal GST, the effective sales tax in Quebec is 14.975%.
- One mileage policy, two form sets.
- - Source deductions: Quebec uses a separate withholding table (TP-1015.3-V).
- Quilometragem exports CSVs that can be filtered by employee for both federal and Quebec filings.

## 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%.

## Sources

- [Revenu Québec — Form TP-64.3-V General Conditions of Employment](https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-64.3-v/) — Revenu Québec (2026-04-28)