In Québec, two taxes are applied to products and services. However, consumption taxes are paid by the end consumer of goods and services, and not by companies.

Goods and Services Tax (GST)
The GST, which is similar to the value-added tax in effect in member countries of the European Union, is collected by businesses from their clients. The tax is calculated by multiplying the selling price of the taxable product or service by 5%. Businesses are generally entitled to a refund or credit for the GST paid on business-related products and services.

Québec Sales Tax (QST)
The 7.5% Québec sales tax applies to the selling price including the GST. Businesses are generally entitled to a refund of the QST paid on their purchases.