1. What is TPS and TVQ?

TPS (Taxe sur les produits et services) and TVQ (Taxe de vente du Québec) are sales taxes applied in Quebec, Canada. TPS is the federal GST (5%) and TVQ is the provincial QST (9.975%).

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Price \) — Original price before taxes (CAD)
• \( TPS \) — Federal tax rate (default 0.05)
• \( TVQ \) — Provincial tax rate (default 0.09975)

Explanation: The calculator computes the total amount by adding both tax rates to 1, then multiplying by the original price.

3. Importance of Tax Calculation

Details: Accurate tax calculation is crucial for pricing, accounting, and financial planning in Quebec. Businesses must properly collect and remit these taxes.

4. Using the Calculator

Tips: Enter the price in CAD, with TPS and TVQ rates (or use defaults). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Are TPS and TVQ always these rates?
A: These are the standard rates as of 2023, but tax rates can change. Always verify current rates with official sources.

Q2: Are all products subject to both taxes?
A: Most goods and services are taxed with both, but some items may be exempt or have reduced rates.

Q3: How are taxes displayed on receipts?
A: In Quebec, receipts typically show TPS and TVQ separately with their respective amounts.

Q4: Can I claim back these taxes?
A: Businesses can often claim input tax credits, and visitors may be eligible for visitor tax refunds on certain purchases.

Q5: Is this calculator accurate for all situations?
A: This calculates standard retail scenarios. Special cases like tax-included pricing or exempt items may require different calculations.