Calculating the Taxes

Currently, GST and QST are collected on most goods and services supplied in Québec.  As of January 1, 2013, the QST will be applied at a rate of 9.975% to the selling price excluding the GST.

Example

You sell a taxable good for $100. Taxes are calculated as follows:

Selling price

$100.00

GST ($100 × 5%)

$5.00

QST ($100 × 9.975%)

    $9.98

Total 

$114.98

Phasing out of the penny

As of February 4, 2013, if a consumer pays cash and cannot give you exact change, the total amount of the transaction must be rounded up or down. For rounding guidelines, see the Department of Finance Canada website.

Rounding off sales totals applies to cash payments only. Payments made electronically or by cheque must not be rounded off. Note that rounding off amounts must not impact GST and QST amounts. The GST and QST to be collected and remitted to us is determined based on the total amount of a sale, not the rounded-off amount.

Tax rates

The rate you use for calculating the taxes will depend on your cash register:

  • You must use the 9.975% rate to calculate the QST if your cash register calculates the GST and QST in two stages, that is, if it calculates 5% GST on the sale price, then also calculates the QST on the sale price. This rate may be rounded off to 9.97% only if your cash register does not process three-decimal numbers.
  • You must use the 14.975% rate to calculate the GST and QST if your cash register calculates these taxes in one stage, that is, if it uses a single rate to calculate the GST and QST on the sale price. This rate may be rounded off to 14.97% only if your cash register does not process three-decimal numbers.

The rates of 9.97%, 14.97% and 14.975% must not appear on the document attesting to the sale.

Only fractions equal to or greater than one-half of a cent ($0.005) are counted as a whole cent ($0.01) of sales tax. If more than one good or service is being sold, you can calculate the taxes on the total price of all the goods or services purchased before rounding off the fractions.

Last Updated: 2014-01-17