1. What is GST and QST?

GST (Goods and Services Tax) and QST (Quebec Sales Tax) are consumption taxes applied in Canada. GST is a federal tax, while QST is specific to Quebec province.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Price \) — The original price before tax
• \( GST\ Rate \) — The current GST rate (e.g., 0.05 for 5%)
• \( QST\ Rate \) — The current QST rate (e.g., 0.09975 for 9.975%)

Explanation: The equation calculates the combined tax amount by adding the GST and QST rates and multiplying by the original price.

3. Importance of Tax Calculation

Details: Accurate tax calculation is crucial for proper pricing, accounting, and compliance with Canadian tax laws, especially for businesses operating in Quebec.

4. Using the Calculator

Tips: Enter the original price in dollars, GST rate as a decimal (e.g., 0.05 for 5%), and QST rate as a decimal (e.g., 0.09975 for 9.975%). All values must be valid (price > 0, rates between 0-1).

5. Frequently Asked Questions (FAQ)

Q1: What are the current GST and QST rates?
A: As of 2023, GST is 5% (0.05) and QST is 9.975% (0.09975) in Quebec.

Q2: Is QST applied on top of GST?
A: Yes, QST is calculated on the price after GST has been added.

Q3: Are all products subject to both taxes?
A: Most goods and services are subject to both, but some items may be exempt or zero-rated.

Q4: How do I calculate the total price including taxes?
A: Add the calculated tax amount to the original price.

Q5: Do other provinces have similar tax systems?
A: Other provinces may have HST (Harmonized Sales Tax) instead of separate GST and PST.