1. What is Reverse TPS TVQ Calculation?

The Reverse TPS TVQ calculation determines the original price before taxes when you know the total amount paid (including both TPS and TVQ taxes in Quebec, Canada). This is useful for accounting, expense reporting, and financial analysis.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Price \) — Original price before taxes (CAD)
• \( Total \) — Total amount paid including taxes (CAD)
• 1.14975 — Combined tax multiplier (1 + 0.05 TPS + 0.09975 TVQ)

Explanation: The formula reverses the standard tax calculation by dividing the total amount by the combined tax rate.

3. Importance of Reverse Tax Calculation

Details: Reverse tax calculation is essential for businesses to determine pre-tax amounts for accounting, tax reporting, and expense reimbursement purposes.

4. Using the Calculator

Tips: Enter the total amount paid in Canadian dollars (including taxes). The calculator will show the original price before taxes and the breakdown of TPS and TVQ amounts.

5. Frequently Asked Questions (FAQ)

Q1: What are TPS and TVQ?
A: TPS (Taxe sur les produits et services) is the Canadian federal GST (5%). TVQ (Taxe de vente du Québec) is the Quebec sales tax (9.975%).

Q2: Is this calculator specific to Quebec?
A: Yes, this calculator uses Quebec's combined tax rate of 14.975% (5% TPS + 9.975% TVQ). Other provinces have different tax rates.

Q3: Why is the multiplier 1.14975?
A: This represents 100% of the original price plus 5% TPS plus 9.975% TVQ (1 + 0.05 + 0.09975 = 1.14975).

Q4: Can I use this for business expenses?
A: Yes, this is particularly useful for businesses to calculate input tax credits and properly account for expenses.

Q5: How accurate is this calculation?
A: The calculation is mathematically precise, but rounding to two decimal places (cents) may cause minor differences of a few cents in some cases.