How it’s calculated
To add GST, multiply the GST-exclusive price by the rate. To find the GST inside a GST-inclusive price, use the fraction rate ÷ (100 + rate). In Australia (10%) that is one-eleventh of the price; in New Zealand (15%) it is 3/23.
Example (ATO): a ride-sourcing fare of $55 including GST contains $55 ÷ 11 = $5 GST, so the fare excluding GST is $50. Example (IRD): $100 including NZ GST contains 3/23 × $100 = $13.04 GST.
Whether GST applies depends on registration and the type of supply (some are GST-free or input-taxed). Check the ATO or IRD guidance or a registered tax agent.
Frequently asked questions
Why divide by 11 and not take off 10%?
The 10% is charged on the exclusive price, so GST is 10 parts out of 110 in the inclusive price, which is 1/11. Taking 10% off $110 gives $99, which is wrong; $110 ÷ 11 = $10 GST and $100 net.
How do I remove 15% NZ GST?
Multiply the GST-inclusive price by 3/23 to get the GST, or divide the price by 1.15 to get the GST-exclusive amount. $230 inclusive → $30 GST, $200 exclusive.
Do I have to show GST on a tax invoice?
In Australia a tax invoice must show the GST amount, or state "Total price includes GST" when GST is exactly one-eleventh of the total. See the ATO tax invoice rules.
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Sources
- Goods and services tax (GST) — Australian Taxation Office
- Tax invoices (GST is one-eleventh of the total price) — Australian Taxation Office
- Ride-sourcing: Fares ($55 fare includes $5 GST) — Australian Taxation Office
- Charging GST (15%; 3/23 of a GST-inclusive price) — Inland Revenue (New Zealand)
Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.
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