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:

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

Explanation: TPS is calculated on the base price, then TVQ is calculated on the price including TPS.

3. Importance of Tax Calculation

Details: Accurate tax calculation is crucial for pricing, accounting, and financial planning in Quebec. The compound nature of these taxes means they must be calculated in the correct order.

4. Using the Calculator

Tips: Enter the base price in CAD and tax rates as decimals (5% = 0.05). Default values are provided for standard Quebec rates.

5. Frequently Asked Questions (FAQ)

Q1: Why is TVQ calculated after TPS?
A: TVQ is a provincial tax applied on the price including federal TPS, following Quebec's tax laws.

Q2: Are there exemptions to these taxes?
A: Yes, certain goods and services may be exempt or zero-rated. Consult Revenue Quebec for specifics.

Q3: Do other provinces use this tax structure?
A: No, other provinces have different tax structures (e.g., HST in some provinces combines both taxes).

Q4: How often do these tax rates change?
A: Rates change infrequently but check official sources for current rates before important calculations.

Q5: Can I use this for business accounting?
A: While this provides accurate calculations, always verify with your accountant for official business purposes.