GST calculation in Canada

Última actualización hace 59 días

Calculate GST on an amount

Calculate GST on an amount

Do you want to calculate GST quickly and easily?

We have created a GST calculator on our website that you can use very easily. You can add GST to the amount or remove GST from the amount.

How to calculate GST? To do so, you have to calculate it using the corresponding formula.

First, you have to divide that 5%, which is the GST percentage, by 100%. After doing the math, this totals a result of 0.05. For clarity:

GST% = 5% / 100% = 0.05

Next, you have to multiply the selling price, known as the taxable base, with the GST percentage. For example: $129.65 (which is the taxable amount) times 0.05 (the result of the above formula). This equals $6.48 (GST amount). The formula looks like this:

GST amount = taxable base * GST (5%)

$129.65 * 0.05 = $6.48

This is the total price with GST: $129.65 + $6.48 = $136.13

How is the total calculated without separating GST?

How to add GST to a price? There is a simple, effective, and quick way that will help you to calculate the total amount or cost of GST. This is another formula that is quite well known. It consists of adding a one to the result of the percentage of the tax that we detailed previously. That is to say: 1 + 0.05 = 1.05 .

This must be multiplied with the taxable base or sales price, following the example would be $129.65. After performing the mathematical operation, you will see that this will result in a cost with GST already included (total amount). Which means $136.13, the formula looks like this:

GST total amount = $129.65 * 1.05 = $136.13

Calculate the price excluding GST. How to remove GST from the total amount?

How to remove GST? You must divide the total amount to be charged to the final consumer with the GST percentage. If the total amount is $129.65 and the tax commission is 5%, this formula will give you this:

Taxable income = Total amount / GST (5%)

$129.65 / 1.05 = $123.48

How to calculate the taxable income with GST only?

Calculate the taxable base: In the opposite case, that is to say, if you only have the total cost of the tax, you must perform another formula to know the taxable base. It simply consists of dividing the amount of the tax by 0.05, which is the corresponding percentage to charge.

In other words, if the GST amount is $6.17 -as applied- you have to divide it by 0.05. You can see it better in this next formula:

Taxable income = GST amount / GST (5%)

$6.17 / 0.05 = $123.48

This means that the cost of sale excluding GST is $123.48.