Calculate GST in New Zealand: types, examples and how it works

What is GST in New Zealand and how does it work?

The Value Added Tax or GST is a tax applied to the sale of goods or services. GST is charged throughout the production and distribution chain, ensuring that at the end, consumers are the ones who pay it.

To determine the GST you need to consider the sale price of the product or service offered, as well as 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 affecting the countries being discussed.

Standard percentages are usually applied to the purchase of general goods and services, while reduced percentagesusually correspond to essential products or food items. For example, a smartphone may have a GST of 15%, which would be the standard GST;

Basic concepts to understand GST calculation

Calculating GST is a simple and quick operation that can be done in a few seconds. However, not everyone knows how to add and subtract percentages for this. The mistakes made when calculating GST are always the same, although these are easy to avoid with the right formulas.

It is essential to clarify certain points to avoid preventable mistakes when calculating the total amount of a bill. These are the facts to know to calculate GST accurately and simply.