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:

• \( Price \) — The original price before tax
• \( TPS \) — Federal tax rate (5% = 0.05)
• \( TVQ \) — Provincial tax rate (9.975% = 0.09975)

Explanation: The formula accounts for the compounding effect where TVQ is applied after TPS has been added to the price.

3. Importance of Tax Calculation

Details: Accurate tax calculation is crucial for pricing, accounting, and financial planning in Quebec businesses.

4. Using the Calculator

Tips: Enter price in CAD dollars, TPS rate (default 0.05 for 5%), and TVQ rate (default 0.09975 for 9.975%). All values must be valid (price > 0).

5. Frequently Asked Questions (FAQ)

Q1: Why is there a TPS×TVQ term in the formula?
A: This accounts for the fact that TVQ is applied to the price after TPS has been added (tax on tax).

Q2: What are the current TPS and TVQ rates?
A: As of 2023, TPS is 5% and TVQ is 9.975%, but always verify current rates as they may change.

Q3: Are all products subject to both taxes?
A: Most goods and services are taxed, but there are exceptions like basic groceries (no TPS/TVQ) and certain medical services.

Q4: How is this different from other provinces?
A: Other provinces may have HST (combined tax) or different provincial tax rates without the compounding effect.

Q5: Can I use this for business accounting?
A: This provides an estimate, but for official accounting, consult with a tax professional.