1. What are TPS and TVQ?

TPS (Taxe sur les Produits et Services) is the Canadian federal sales tax of 5%. TVQ (Taxe de Vente du Québec) is the Quebec provincial sales tax of 9.975%. These taxes are applied sequentially to most goods and services in Quebec.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

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

Explanation: TPS is calculated first on the base price, then TVQ is calculated on the sum of the base price and TPS.

3. Importance of TPS/TVQ Calculation

Details: Accurate tax calculation is essential for pricing, accounting, and financial planning in Quebec. The sequential application of taxes makes manual calculation error-prone.

4. Using the Calculator

Tips: Enter the base price in Canadian dollars (without taxes). The calculator will compute both taxes and the total amount to pay.

5. Frequently Asked Questions (FAQ)

Q1: Are all products subject to both taxes?
A: Most goods and services are taxed with both, but there are exceptions like basic groceries (no TPS/TVQ) or children's clothing (no TVQ).

Q2: Why is TVQ calculated on price+TPS?
A: Quebec applies the provincial tax on the after-federal-tax amount, unlike some other provinces that apply both taxes on the base price.

Q3: Are the tax rates current?
A: Rates shown are current as of 2023. Check official sources for any rate changes.

Q4: How are taxes displayed on receipts?
A: Typically shown separately (base price, TPS amount, TVQ amount, then total).

Q5: Do businesses pay these taxes?
A: Businesses pay them but can generally claim input tax credits to recover these amounts.