1. What is Quebec Sales Tax Reverse Calculation?

The Quebec Sales Tax Reverse Calculation determines the original pre-tax amount when you know the total amount paid including both GST (5%) and QST (9.975%). This is useful for accounting, expense reporting, and financial analysis.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• Total Amount — Final price including GST and QST (CAD)
• 1.05 — Represents the 5% GST rate
• 1.09975 — Represents the 9.975% QST rate

Explanation: The equation works backward from the total amount to find the original price before taxes were applied.

3. Importance of Pre-tax Calculation

Details: Knowing the pre-tax amount is essential for accurate accounting records, expense reimbursements, and understanding the true cost of goods and services before taxes.

4. Using the Calculator

Tips: Enter the total amount paid in Canadian dollars (including all taxes). The calculator will show the pre-tax amount, GST (5%), and QST (9.975%) separately.

5. Frequently Asked Questions (FAQ)

Q1: Why are both GST and QST applied in Quebec?
A: Quebec has both federal GST (5%) and provincial QST (9.975%), which are applied sequentially on the pre-tax amount.

Q2: Is QST calculated on the amount including GST?
A: Yes, QST is calculated on the price after GST has been added to the pre-tax amount.

Q3: Are there exceptions to these tax rates?
A: Some goods and services may be exempt or have different tax rates. Always check current Quebec tax regulations.

Q4: How often do these tax rates change?
A: Tax rates can change, though they've been stable recently. Verify current rates with Revenu Québec.

Q5: Can I use this for business expense reporting?
A: Yes, this calculator helps separate taxes from business expenses for proper accounting and tax filing.