Daycare Startup in Montreal - GST Exemption/Rebate

[jsadek]

Hi,

I am starting up a private daycare in Montreal and we will open doors in October.
I am trying to figure out the right structure so that I can rebate GST paid for expenses such as rent, grocery, material etc... My accountant didn't provide much help so I am hoping you can provide some guidance. I have been told that I need to setup an operating company that has GST/QST numbers that pays the expenses and invoices them to the daycare company and then rebates the GST. How would that happen exactly?
Let's say my rent is $10,000 per month + $1,500 GST/QST
The operating company pays $11,500 to the landlord
How much would the operating company invoice the daycare company? Is it again $10,000 + $1,500 GST/QST and then the operating company claims the GST amount ($500) as daycare operating company?
Also, there are no exemptions on QST as far as I know, is that correct?

I appreciate some guidance.
Thanks

[kindertime]

Your question is probably way outside the expertise of the ladies here, mostly we are home daycare providers and therefore do not deal with GST/QST. My advice, get yourself a new accountant. Find one with proper business knowledge. You could also contact revenue Quebec directly. I'm sure they would be more than happy to help you out, since the Que. gov't has been bending over backwards lately licencing businesses like yours in order to push out businesses like mine. Good luck.

[Suzie_Homemaker]

kindertime say my thought. If your accountant leaving so many question unanswered, he not doing what should be. Find new accountant who doing all of their job and not leave you wondering about some very big parts. You employing that accountant and paying for their knowledge and guidance but not seem like you getting much.

[Lee-Bee]

I agree with the ladies above BUT...first talk to your accountant. There is a chance they just assumed you know what to do because you are opening a business. Ask for clarification, making it known you need more guidance...if they still don't give enough guidance you need to find a new accountant.