1. What is GST/QST?

GST (Goods and Services Tax) is a 5% federal tax applied to most goods and services in Canada. QST (Quebec Sales Tax) is a 9.975% provincial tax applied in Quebec on most goods and services.

2. How Does the Calculator Work?

The calculator uses the following formulas:

Where:

• \( Amount \) — The pre-tax amount in Canadian dollars
• \( GST \) — Federal tax at 5% rate
• \( QST \) — Quebec provincial tax at 9.975% rate

3. Importance of GST/QST Calculation

Details: Accurate tax calculation is crucial for businesses and consumers in Quebec to understand the total cost of purchases and ensure proper tax reporting.

4. Using the Calculator

Tips: Enter the pre-tax amount in Canadian dollars. The calculator will compute both taxes separately, the total tax amount, and the final amount including taxes.

5. Frequently Asked Questions (FAQ)

Q1: Are all goods and services subject to both GST and QST?
A: Most are, but some items are exempt, zero-rated, or have special rates. Consult Revenu Quebec for specific cases.

Q2: Is QST calculated on the amount before or after GST?
A: QST is calculated on the amount before GST is added (not on the GST-included amount).

Q3: What's the combined tax rate in Quebec?
A: The combined rate is approximately 14.975% (5% GST + 9.975% QST on the pre-tax amount).

Q4: Do businesses pay GST/QST?
A: Businesses pay the taxes but can generally claim input tax credits to recover GST/QST paid on business expenses.

Q5: Are there any GST/QST exemptions?
A: Yes, certain items like basic groceries, prescription drugs, and residential rents are exempt.