IS GST THE SAME AS TPS? UNDERSTANDING TAX ACRONYMS

If you run a business in Quebec or anywhere in Canada, you’ve likely seen both “GST” and “TPS” on invoices, government forms, and accounting systems. Many new businesses wonder if these terms refer to different taxes — or if they are simply two names for the same thing. The short answer: GST and TPS are the exact same tax. This guide explains why Canada uses two acronyms, what each term means, and how they fit into Quebec’s GST/QST system.

Understanding these tax acronyms helps avoid confusion in invoicing, accounting, and compliance.

LEGAL AND REGULATORY FRAMEWORK

The federal sales tax in Canada is officially called the Goods and Services Tax, or GST.
In French, the legal name is Taxe sur les products et services, or TPS.

Both acronyms refer to the same tax created under the Excise Tax Act.

Quebec businesses must comply with both:
• the Excise Tax Act (federal GST/TPS)
• the Quebec Taxation Act (provincial QST/TVQ)

KEY COURT DECISIONS

Courts have consistently treated GST and TPS as interchangeable terms for the same federal tax. Judges have clarified that:

• GST = TPS
• invoices showing either acronym are compliant
• disputes regarding “GST vs. TPS” wording have no legal consequence
• what matters is the tax rate, not the acronym

Courts have also emphasized that businesses must charge GST/TPS consistently when required under federal law.

WHY BUSINESSES GET CONFUSED

Several factors create confusion around GST/TPS:

• federal forms use GST (English) or TPS (French)
• accounting software sometimes shows both
• invoices in Quebec often list GST and QST side by side
• bilingual businesses use both terms depending on context
• new entrepreneurs think TPS might be a different tax

In reality, TPS is just the French-language name for GST.

IS GST THE SAME AS TPS? YES — HERE’S THE BREAKDOWN

GST = Goods and Services Tax (English)

Federal tax, 5%.

TPS = Taxe sur les produits et services (French)

Federal tax, 5%.

They are identical in every way:

• same rate
• same legislation
• same reporting
• same remittance
• same eligibility for input tax credits
• same filing process

HOW GST/TPS WORK IN QUEBEC ALONGSIDE QST

Quebec businesses must charge and remit:

• GST/TPS — federal 5%
• QST/TVQ — provincial 9.975%

Both appear on invoices. A typical invoice for Quebec customers includes:

• GST/TPS 5%
• QST/TVQ 9.975%

If you sell outside Quebec, the tax may change according to place-of-supply rules.

COMMON QUESTIONS ABOUT GST/TPS

Do I need to list “GST” or “TPS” on my invoice?

Either term is acceptable. Many Quebec invoices show both to be bilingual.

If my invoice says TPS only, is it valid?

Yes, as long as the tax rate, calculation, and registration number are correct.

Why does Revenu Québec use TPS on forms?

Quebec administers GST on behalf of the CRA, so French-language forms use TPS.

Is the GST number the same as the TPS number?

Yes — it is the identical account, just named differently depending on language.

Do I remit TPS separately from GST?

No. They are one and the same.

MACKISEN STRATEGY

Mackisen CPA helps businesses ensure their invoicing, accounting systems, and tax filings use GST/TPS correctly and consistently. We configure bilingual invoice templates, verify compliance with both federal and Quebec legislation, and ensure the proper application of GST/TPS and QST/TVQ across sales platforms.

REAL CLIENT EXPERIENCE

A bilingual retailer used “TPS” on some invoices and “GST” on others. Mackisen standardized templates and ensured all documents aligned with federal requirements.

A consultant misunderstood TPS as a provincial tax and failed to register on time. Mackisen corrected registration and filed backdated GST/TPS returns.

A digital seller had GST coded as a separate tax in software. Mackisen fixed the settings and avoided double taxation.

COMMON QUESTIONS

Does TPS apply outside Quebec?
Yes — GST/TPS applies across Canada except where HST applies.

Do I need a separate TPS number?
No. GST and TPS use the same registration number.

Is QST the same as TPS?
No. QST is provincial; TPS/GST is federal.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps Quebec businesses understand GST/TPS requirements and maintain clean, compliant, bilingual invoicing and filing systems.