How to Figure a GST

GST is paid on nearly all goods and services.

The Goods and Services Tax, GST for short, is a Canadian tax introduced in 1991. This tax applies to nearly all services and goods in Canada, aside from essential food items and financial or medical services. The taxed GST rate in Canada varies by providence, though an example is 7 percent. This figure may be higher or lower depending on the area. If you need to calculate the total GST paid on an item, do so by using a simple formula.

Instructions

1. Divide the GST rate by 100 to get your GST rate as a decimal. For example, if your GST rate is 7 percent, the calculation would be 7 divided by 100, or 0.07.

2. Add "1" to the total value of your calculated GST rate. For example, if you calculated 0.07, the figure would become 1.07.

3. Calculate the GST paid with the figure from step 2. If the item was $200, the calculation would be $200 times 1.07. This equals 214, meaning GST paid on the item was $14.

References

• Canada Revenue Agency: Goods and Services Tax/Harmonized Sales Tax (GST/HST)

Resources

• Math Central: How Much of the total is GST?
• Fact Index: Goods and Services Tax (Canada)