Calculating the Taxes

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

Notes
  • Regardless of the calculation method used, the 9.97%, 14.97% and 14.975% rates 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.

The two-stage calculation

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, you must use the 9.975% rate to calculate the QST.

This rate may be rounded off to 9.97% only if your cash register cannot process three-decimal numbers.

Sample two-stage calculation

You sell a taxable good for $100.

Selling price $100.00
GST ($100 × 5%) + $5.00
QST ($100 × 9.975%) + $9.98
Total $114.98

The one-stage calculation

You must use the 14.975% rate to calculate the GST and QST if your cash register calculates the GST and QST 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 cannot process three-decimal numbers.

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