Calculate GST in Canada: types, examples and how it works
Available GST rates in Canada
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Standard GST of 5%
What is GST in Canada and how does it work?
Value Added Tax or GST is a tax applied to the sale of goods or services. GST is collected throughout the production and distribution chain, ensuring that in the end, it is the consumers who pay it.
To determine the GST, you need to consider the selling price of the product or service offered, and also a specific percentage to obtain the final cost of the GST. The percentage to be charged varies depending on the product or service in question, as well as the social demands of the countries involved.
Standard rates are usually imposed on the purchase of general goods and services, while reduced rates usually correspond to essential products or food. For example, a smartphone might have an GST of 5%, which would be the standard GST;
Basic concepts to understand GST calculation
Calculating GST is a simple and fast operation that can be done in a few seconds. But not everyone knows how to add and subtract percentages for this. The mistakes made when calculating GST are always the same, although they are easy to avoid with the proper formulas.
It is essential to clarify certain points to avoid avoidable mistakes when calculating the total amount of a bill. These are the facts to know to calculate GST accurately and simply.
How GST is calculated in other countries (83 countries)
