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

Explanation: The calculator adds both tax rates together, then multiplies by the base price to calculate total tax.

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 the base price in CAD and tax rates (or use defaults). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between TPS and TVQ?
A: TPS is the federal GST (5%) applied across Canada, while TVQ is the provincial QST (9.975%) specific to Quebec.

Q2: Are there items exempt from these taxes?
A: Yes, certain items like basic groceries, prescription drugs, and some medical devices are exempt.

Q3: Can I change the tax rates?
A: Yes, the calculator allows you to input custom rates, though defaults reflect current Quebec rates.

Q4: Is the tax calculated on top of the price?
A: Yes, the tax is added to the base price to calculate the total amount payable.

Q5: How are the taxes displayed on receipts?
A: In Quebec, receipts typically show both TPS and TVQ amounts separately.