1. What are TPS and TVQ?

TPS (Taxe sur les Produits et Services) is the Canadian federal sales tax at 5%. TVQ (Taxe de Vente du Québec) is the provincial sales tax in Quebec at 9.975% (2025 rate) applied after TPS.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

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

Explanation: TVQ is calculated on the price after TPS has been added (cascading tax system).

3. Importance of Tax Calculation

Details: Accurate tax calculation is essential for pricing, accounting, and financial reporting in Quebec. Businesses must properly collect and remit these taxes.

4. Using the Calculator

Tips: Enter the base price before taxes in Canadian dollars. The calculator will compute both taxes and the total amount to pay.

5. Frequently Asked Questions (FAQ)

Q1: Are these the current tax rates?
A: These are the 2025 rates. Always verify current rates with Revenu Québec as they may change.

Q2: What items are exempt from TPS/TVQ?
A: Basic groceries, prescription drugs, and certain services may be exempt. Consult tax authorities for specifics.

Q3: How often do tax rates change?
A: Tax rates typically remain stable but can change during government budget announcements.

Q4: Do I pay both taxes on online purchases?
A: Yes, both TPS and TVQ apply to most online purchases delivered to Quebec addresses.

Q5: How are taxes displayed on receipts?
A: TPS and TVQ must be shown separately on receipts for Quebec sales.