1. What is GST and QST in Quebec?

In Quebec, consumers pay two sales taxes: the federal Goods and Services Tax (GST) at 5% and the provincial Quebec Sales Tax (QST) at 9.975%. The QST is calculated on the price after GST has been added.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( Price \) — The original price before taxes
• \( GST \) — Federal Goods and Services Tax (5%)
• \( QST \) — Quebec Sales Tax (9.975%)

Explanation: The QST is calculated on the price including GST, which makes Quebec's tax system slightly different from other provinces.

3. Importance of Tax Calculation

Details: Accurate tax calculation is essential for businesses to properly charge customers and for consumers to understand the true cost of purchases in Quebec.

4. Using the Calculator

Tips: Enter the price before taxes in Canadian dollars. The calculator will show the GST, QST, and total amount including both taxes.

5. Frequently Asked Questions (FAQ)

Q1: Why is QST calculated after GST?
A: Quebec's tax system is designed this way - the provincial tax is applied to the price including the federal tax.

Q2: Are there any exemptions?
A: Yes, certain items like basic groceries, prescription drugs, and some services are exempt from GST and/or QST.

Q3: Is this calculator accurate for all purchases?
A: It works for most standard purchases, but some items may have different tax rates or exemptions.

Q4: How do these rates compare to other provinces?
A: Quebec has one of the highest combined tax rates in Canada due to this calculation method.

Q5: When did these rates come into effect?
A: The current QST rate of 9.975% has been in effect since January 1, 2013.