Download [Type text] Calculating GST at 15% As the new GST rate of 15% is

[Type text]
Calculating GST at 15%
As the new GST rate of 15% is now effective, a number of clients have asked how to calculate the
GST on an invoice.
To calculate the GST on a GST-exclusive figure, use the following formula:
GST
=
GST-exclusive amount x 0.15
For example, if the GST-exclusive price of a good or service is $3,000, the GST is calculated as
follows:
GST
=
=
$3,000 x 0.15
$450
The GST-inclusive sale price will then be $3,450 (being $3,000 + $450).
Value of goods (GST-exclusive amount)
Add: GST at 15%
Total price (GST-inclusive amount)
$3,000.00
$450.00
$3,450.00
To find the GST on a GST-inclusive amount, use the following formula:
GST
=
GST-inclusive amount x
3
23
For example, if the GST-inclusive sale price of a good or service is $3,450, the GST is calculated as
follows:
GST
=
$3,450 x
=
$450
3
23
The GST-exclusive price will then be $3,000 (being $3,450 - $450).
Formula to calculate the GST-exclusive amount from the GST-inclusive figure:
GST-exclusive amount
=
GST-inclusive amount
1.15
Formula to calculate the GST-inclusive amount from the GST-exclusive figure:
[Type text]
GST-inclusive amount
=
GST-exclusive amount x 1.15
Why multiply by 3/23 to calculate GST?
The fraction method is calculated as follows:
Rate of tax
100 + rate of tax
=
15
100 + 15
=
15
115
=
3
23
As always, if you require any assistance in this, please feel free to contact us. We would be happy to
help you.