1. What is TPS/TVQ?

The TPS (Taxe sur les produits et services) is the federal GST at 5%, and the TVQ (Taxe de vente du Québec) is the provincial QST at 9.975%. In Quebec, these taxes are applied sequentially.

2. How Does the Calculator Work?

The calculator uses the Quebec tax formula:

Where:

• \( Price \) — The original price before taxes (CAD)
• \( 0.05 \) — TPS rate (5%)
• \( 0.09975 \) — TVQ rate (9.975%)

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

3. Quebec Sales Tax Structure

Details: Quebec has a combined sales tax rate of 14.975%, consisting of 5% federal tax (TPS) and 9.975% provincial tax (TVQ). The TVQ is applied after the TPS has been added to the price.

4. Using the Calculator

Tips: Enter the pre-tax price in Canadian dollars. The calculator will show the breakdown of TPS, TVQ, total tax, and final amount including all taxes.

5. Frequently Asked Questions (FAQ)

Q1: Why is the total tax rate not exactly 14.975%?
A: Because the TVQ is applied to the amount after TPS has been added, the effective combined rate is slightly higher than simply adding 5% + 9.975%.

Q2: Are all goods and services subject to both taxes?
A: Most are, but some items may be exempt from one or both taxes (e.g., basic groceries are TPS exempt).

Q3: How does this differ from other provinces?
A: Quebec is unique in applying the provincial tax after the federal tax. Most provinces with HST apply a single combined rate.

Q4: Are there special rates for certain products?
A: Yes, some items like books have reduced TVQ rates, and certain services may be exempt.

Q5: When did the current TVQ rate take effect?
A: The 9.975% rate has been in effect since January 1, 2013.