Confusing - exact GST rate
#1
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Joined: Jun 2008
Posts: 457
Confusing - exact GST rate
Refer this link:
http://www.ird.govt.nz/gst/gst-registering/gst-about/
Goods and services tax (GST) is a tax on most goods and services in New Zealand, most imported goods, and certain imported services. GST is added to the price of taxable goods and services at a rate of 15%.
Here's how to calculate your GST:
• You charge GST at 15% for sales and income. ◦ Calculate GST by multiplying the sales and the income figure by 3 then dividing by 23.
• You claim GST at 15% for purchases and expenses. ◦ Calculate GST by multiplying the purchases and expenses figure by 3 then dividing by 23.
Note:
Multiplying a sales or purchases amount by 3 then dividing by 23 enables you to find out the GST amount. Subtract this amount to get the GST exclusive amount.
3/23 = 0.1304348 = 13.04348%
So is the GST rate 13.04348% or exact 15%?
http://www.ird.govt.nz/gst/gst-registering/gst-about/
Goods and services tax (GST) is a tax on most goods and services in New Zealand, most imported goods, and certain imported services. GST is added to the price of taxable goods and services at a rate of 15%.
Here's how to calculate your GST:
• You charge GST at 15% for sales and income. ◦ Calculate GST by multiplying the sales and the income figure by 3 then dividing by 23.
• You claim GST at 15% for purchases and expenses. ◦ Calculate GST by multiplying the purchases and expenses figure by 3 then dividing by 23.
Note:
Multiplying a sales or purchases amount by 3 then dividing by 23 enables you to find out the GST amount. Subtract this amount to get the GST exclusive amount.
3/23 = 0.1304348 = 13.04348%
So is the GST rate 13.04348% or exact 15%?
#2
Re: Confusing - exact GST rate
GST rate is 15%
So $100 + GST is $115
To find the GST content of the total $115 x 3 = $345 then / 23 = $15
So the GST content of the total is $15.
So $100 + GST is $115
To find the GST content of the total $115 x 3 = $345 then / 23 = $15
So the GST content of the total is $15.
#3
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Joined: Jul 2007
Location: bottom of the world
Posts: 4,533
Re: Confusing - exact GST rate
Very good, did you find that on facebook or twitter ??
#6
Just Joined
Joined: Jul 2012
Posts: 24
Re: Confusing - exact GST rate
Hi
If $180 includes gst at 15% then you can divide $180 by 115 and multiply by 100, this gives the net goods figure $157.
$180 - $157 = $23 ( this is the GST charged on the net goods )
Trust this helps
Ian
If $180 includes gst at 15% then you can divide $180 by 115 and multiply by 100, this gives the net goods figure $157.
$180 - $157 = $23 ( this is the GST charged on the net goods )
Trust this helps
Ian
#8
Re: Confusing - exact GST rate
It's not difficult!
Multiplying the price by 3/23 tells you the amount of GST you have paid. It's the fraction of the total price that is GST.
Geek, the amount you multiply by 3/23 already includes GST
Multiplying the price by 3/23 tells you the amount of GST you have paid. It's the fraction of the total price that is GST.
Geek, the amount you multiply by 3/23 already includes GST