1. What is the Reverse Sales Tax Calculator?

This calculator helps determine the pre-tax amount when you know the total amount paid including Quebec's GST (5%) and QST (9.975%). It's useful for expense tracking and accounting purposes.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Total Amount — Final amount paid including all taxes (CAD)
• 1.05 — Represents the 5% GST
• 1.09975 — Represents the 9.975% QST

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

3. Importance of Sales Tax Calculation

Details: Accurate tax calculation is essential for proper accounting, expense reporting, 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 and the breakdown of GST and QST.

5. Frequently Asked Questions (FAQ)

Q1: Why are there two different taxes in Quebec?
A: Quebec has the federal GST (5%) and provincial QST (9.975%), which combine for an effective tax rate of 15.475%.

Q2: Is this calculator applicable outside Quebec?
A: No, this specifically calculates Quebec taxes. Other provinces have different tax rates and structures.

Q3: How accurate is this calculation?
A: The calculation is mathematically precise for the given tax rates, though actual receipts might show slight rounding differences.

Q4: Does this work for tax-exempt purchases?
A: No, this calculator assumes standard taxable goods and services. Tax-exempt items would require different calculations.

Q5: Can I use this for business accounting?
A: While useful for estimates, always consult with an accountant for official business tax calculations and reporting.