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How to Correctly Calculate Goods & Services Tax Costs for New Zealand

These New Zealand GST calculators work out:

- The GST to add to an GST Exclusive amount
- The GST content of a GST Inclusive amount
- The original costs based just on the GST amount

**Enter any known amount into the appropriate box to calculate the other 2 figures.**

- Add 15% GST to a GST Exclusive Price
- Find the GST component of a GST Inclusive Price
- Find GST Exclusive Price from full cost including GST

**Basic GST Calculations.**

**Goods and Services Tax in NZ is 15%**

To add 15% GST on $100

**$100 x 15% = $15 GST****$100 + $15 GST = $115 GST Inclusive.**

**A quick way to Add GST is to Multiplythe GST exclusive amount by 1.15 **

Examples Below:

**$200 + GST = $200 x 1.15**

**= $230****$500 + GST = $500 x 1.15**

**= $575**

**Inland Revenue (IRD) recommends the following formula to find the GST amount from a GST inclusive price.**

**GST Inclusive Price X 3 ÷ 23 = GST Amount**

Working backwards to find the GST and GST exclusive amounts from the total GST inclusive price.

**$115 X 3 ÷ 23 = $15 GST**

To work out the GST exclusive amount simply subtract the GST from the GST inclusive amount to get the original GST exclusive cost.

**$115 – $15 GST = $100**

We're now back to the start with a GST exclusive price.

When using the correct formula, you can see the $15 GST cost remains the same when adding GST on and finding the GST amount from the inclusive price.

**Don't Just Remove 15%**

Just subtracting 15% from the GST inclusive price won't work.

**15% of $115 = $17.25**

(not $15)

To subtract 15% from our $115 GST inclusive figure from above…

**$115 – 15% = $97.75**

(not $100)

Contact Devine Accounting to book an initial consultation.