Quebec Tax Formula:
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Quebec has two sales taxes: the federal GST (TPS in French) and the provincial QST (TVQ in French). These taxes are applied to most goods and services purchased in Quebec.
The calculator uses the Quebec tax formula:
Where:
Explanation: The calculator multiplies the price by the sum of both tax rates to determine the total tax amount.
Details: TPS (Taxe sur les Produits et Services) is the 5% federal tax. TVQ (Taxe de Vente du Québec) is the 9.975% provincial tax. Some items may be exempt or have reduced rates.
Tips: Enter the base price in Canadian dollars. The default tax rates are set to current Quebec values but can be adjusted if needed for special cases.
Q1: Are all products taxed at these rates?
A: No, some items like basic groceries, prescription drugs, and children's clothing are exempt from TPS and/or TVQ.
Q2: Why are there two separate taxes?
A: TPS is the federal GST collected across Canada, while TVQ is specific to Quebec as provincial sales tax.
Q3: Do tourists pay these taxes?
A: Yes, all consumers pay these taxes at point of sale, though tourists may be eligible for rebates on certain purchases.
Q4: How often do these tax rates change?
A: Tax rates change infrequently, but it's always good to verify current rates before important calculations.
Q5: Are services taxed the same as goods?
A: Most services are subject to both taxes, though some professional services may have different tax treatments.