How to Add GST
In Australia, New Zealand and Canada, most goods and services purchased are subject to a special tax called, appropriately enough, a goods and services tax or GST. Funds raised through this tax contribute to various social services provided by the government. Like a sales tax in the United States and other countries, the amount is based on a percentage of the item or service purchased, with the actual percentage differing by the country. Adding the GST requires first calculating the amount of tax owed for the item and adding that to the original price.
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Instructions
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1
Determine the exact percentage of the sales tax. This is dependent on the country the item or service is purchased in. As of April 2011, the GST in Australia is 10 percent, in New Zealand it's 15 percent and in Canada it's 5 percent.
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2
Decide if the price of the item includes the GST or not. Many goods and services available in these countries already include the GST in the listed price, meaning that it isn't necessary to add the GST after. The best way to conclude whether or not the GST is included is to ask the salesperson before making the purchase.
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3
Calculate the amount taxed by multiplying the original price by the GST in decimal form. In Australia multiply the original amount by 0.10, in New Zealand multiply by 0.15 and in Canada multiply by 0.05.
For example, an item with a dollar price of 100 has a GST of 10 in Australia, 15 in New Zealand and 5 in Canada.
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4
Add the GST to the initial price. Using the same example as in Step 3, the final price would be 110 in Australia, 115 in New Zealand and 105 in Canada.
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