1. What is 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 provincial sales tax in Quebec, currently 9.975%. These taxes are applied sequentially on most goods and services in Quebec.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( Prix \) — The base price before taxes (CAD)
• \( TPS \) — Federal tax (5%)
• \( TVQ \) — Provincial tax (9.975%) applied after TPS

3. Importance of Tax Calculation

Details: Accurate tax calculation is essential for pricing, accounting, and financial planning in Quebec. The sequential application means TVQ is calculated on the price including TPS.

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 taxes) or children's clothing (no TVQ).

Q2: Why is TVQ calculated on price including TPS?
A: Quebec's tax system applies the provincial tax after the federal tax, making it a tax-on-tax system.

Q3: Are the tax rates the same everywhere in Canada?
A: No, TPS is federal (5% nationwide), but provincial taxes vary. Quebec has the highest combined rate at 14.975%.

Q4: How often do these tax rates change?
A: Tax rates change infrequently, but it's good to verify current rates as provincial governments may adjust them.

Q5: Is this calculator accurate for business accounting?
A: This provides a general calculation. For official business accounting, consult with a tax professional.