How to Add GST to a Price
The Goods and Services Tax (GST) tax is a tax added to many goods and services and some imported goods and services in Canada, Australia and New Zealand. It operates much like sales tax in the United States. The proceeds from the GST tax go to the federal governments to help fund government services and operations. If you are visiting one of these countries, most purchases you make while there will be subject to the addition of the GST tax making an understanding of how to add the tax important.
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Instructions
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Determine whether your purchase is subject to the GST tax. Almost all taxable purchases in all three countries are subject to the GST tax. The best way to be certain that a purchase is subject to the tax is to ask the seller before agreeing to the purchase.
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Decide what the GST tax rate is that must be added. As of 2010, the GST tax rate for Australia was 10 percent, for New Zealand the GST tax rate was 15 percent and Canada's GST tax rate was 5 percent. Note, however, that in certain provinces of Canada you must also pay a provincial tax in addition to the GST. The two taxes combined are known as the GST/HST (harmonized sales tax) tax. Current rates for the GST/HST can be found on the Canada Revenue Agency website (see Resources).
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Multiple the price of the item you are purchasing or the cost of the service by the GST tax rate. For instance, if you are purchasing an item in New Zeaaland with a purchase price of $100 you will multiple $100 x 0.15 for a GST tax amount of $15.
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Add the original purchase price to the GST tax amount for a total purchase price. In the above example the total purchase price including the GST tax is $115.
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