QST / TVQ (Quebec Sales Tax) increase effective January 1, 2011
Are you ready for the increase in the Quebec Sales Tax ("QST") on January 1, 2011? QST is known in French as Taxe de vente du Québec ("TVQ").
The QST rate will be increasing from 7.5% to 8.5%. Since QST is charged on top of the 5% federal goods and services tax ("GST'), the effective QST rate will be 8.925%.
According, the combined effective GST and QST rate in Quebec effective January 1, 2011 will be 13.925%.
These sales tax rates will apply all goods and services where GST and QST are currently charged.
Transition rules may apply on some transactions.
Also, it was proposed in the 2010 Quebec provincial budget that the QST rate be increased on January 1, 2012 by 1% from 8.5% to 9.5%. This proposal has not yet passed into law.
This article is intended to inform readers of developments as of the date of publication on November 28, 2010 and is neither a definitive analysis of the law, proposed law, administrative positions, interpretations, court cases etc. nor a substitute for professional advice. Readers should discuss with appropriate professional tax advisors, financial advisors, legal counsel and/or other advisors regarding how the information may apply to their specific situations. This post will NOT be updated for changes in legislation, court cases, interpretations or other matters after publication. E.&.O.E.
QST / TVQ (Quebec Sales Tax) increase effective January 1, 2011
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