1. What is Quebec Reverse Sales Tax Calculator?

This calculator helps determine the pre-tax amount when you know the total amount paid including both GST (5%) and QST (9.975%) in Quebec province.

2. How Does the Calculator Work?

The calculator uses the Quebec sales tax formula:

Where:

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

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

3. Importance of Reverse Tax Calculation

Details: Reverse tax calculation is essential for accounting, expense reporting, and understanding the true cost of goods before taxes.

4. Using the Calculator

Tips: Enter the total amount paid in CAD including both GST and QST. The calculator will show the breakdown of pre-tax amount and individual taxes.

5. Frequently Asked Questions (FAQ)

Q1: Why does Quebec have two sales taxes?
A: Quebec has the federal GST (5%) and provincial QST (9.975%), which are applied sequentially (GST first, then QST on the amount including GST).

Q2: Are all items subject to both taxes?
A: Most goods and services are subject to both, but some items may be exempt from one or both taxes.

Q3: How is this different from other provinces?
A: Quebec is unique in applying QST on top of the GST-included amount, while most provinces with HST apply a single tax rate.

Q4: Can I use this for business expenses?
A: Yes, this helps businesses separate the actual expense from the taxes paid for accounting purposes.

Q5: Why is the combined tax rate not exactly 14.975%?
A: Because QST is applied to the amount after GST has been added, making the effective rate slightly higher than simple addition.