1. What is Ontario TPS (HST)?

The Ontario TPS (Taxe sur les Produits et Services) or HST (Harmonized Sales Tax) is a 13% combined federal and provincial sales tax applied to most goods and services in Ontario.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Price \) — The pre-tax price of goods or services in Canadian dollars
• \( 0.13 \) — The 13% tax rate (5% federal GST + 8% Ontario PST)

3. Importance of TPS Calculation

Details: Accurate TPS calculation is essential for businesses to properly charge customers, file tax returns, and maintain compliance with Ontario tax laws.

4. Using the Calculator

Tips: Simply enter the pre-tax price in Canadian dollars and the calculator will show both the TPS amount and the total price including tax.

5. Frequently Asked Questions (FAQ)

Q1: What items are exempt from Ontario TPS/HST?
A: Basic groceries, prescription drugs, and certain medical devices are exempt. Some items like prepared foods are taxable.

Q2: Is the TPS rate the same across Canada?
A: No, Ontario's 13% rate is specific to this province. Other provinces have different rates (e.g., 15% in Nova Scotia, 5% in Alberta).

Q3: Do I need to pay TPS on online purchases?
A: Yes, TPS applies to most online purchases delivered to Ontario addresses.

Q4: How often must businesses remit TPS/HST?
A: It depends on your business's annual revenue, ranging from monthly to quarterly or annually.

Q5: Can I get a TPS/HST refund as a visitor?
A: Visitors to Canada may be eligible for TPS/HST rebates on certain goods they export.