CONSUMER TAXATION
News
In Quebec, two types of tax are applicable on products and services. However, consumer taxes are paid by end users when purchasing goods and services and not by enterprises.
Tax on products and services (TPS)
This tax, similar to the value-added tax in use in the member countries of the European Union, is collected by enterprises from its customers and corresponds to the result of the product’s sale price or taxable service multiplied by a rate of 5%. Enterprises are generally reimbursed or can take credit for the TPS paid when purchasing goods and/or services necessary for their commercial activities.
Quebec Sales Tax (TVQ)
This tax, at a fixed rate of 7.5% applies to the sale price including the TPS. Generally, enterprises can be reimbursed for the TVQ paid for purchasing goods.
Source: Montreal International