1. What is TVQ?

The TVQ (Taxe de vente du Québec) is the provincial sales tax in Quebec, Canada. It's applied at a rate of 9.975% on the sum of the price of goods/services and the federal GST/TPS.

2. How Does the Calculator Work?

The calculator uses the TVQ formula:

Where:

• \( Price \) — Base price of goods/services (CAD)
• \( TPS \) — Federal GST/TPS tax amount (CAD)
• \( 0.09975 \) — TVQ rate (9.975%)

Explanation: TVQ is calculated on the total of the price plus the federal GST/TPS, not just the base price.

3. Importance of TVQ Calculation

Details: Accurate TVQ calculation is essential for businesses operating in Quebec to ensure proper tax collection and remittance to Revenue Quebec.

4. Using the Calculator

Tips: Enter the base price in CAD and the TPS amount in CAD. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is TVQ applied on top of GST/TPS?
A: Yes, TVQ is calculated on the sum of the base price and the GST/TPS amount.

Q2: What's the current TVQ rate?
A: The current rate is 9.975% as of January 1, 2013.

Q3: Are there exemptions to TVQ?
A: Yes, certain goods and services are exempt, similar to GST/HST exemptions.

Q4: How often must businesses remit TVQ?
A: This depends on the business's annual taxable sales, ranging from monthly to annually.

Q5: Can I claim TVQ input tax credits?
A: Registered businesses can generally claim credits for TVQ paid on business inputs.