©G Dear 2009 – Not to be sold/Free to use Taxation Applied Mathematics Preliminary GST & VAT Stage 6 - Year 11 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use

GST & VAT (1/9) Goods and Services Tax Value Added Tax The GST is a 10% tax on the purchase price of most items. Goods and Services Tax VAT is similar to GST and is used in many countries, such as the UK Value Added Tax The percentage used with VAT varies from country to country 2

Health and Medical Care GST Free (2/8) Health and Medical Care Services by medical practitioners and pathologists; Services by allied health practitioners such as physiotherapists, naturopaths, nurses and optometrists; Hospital treatment; Disability services; Medical aids and appliances; Pharmaceuticals; Health insurance. 3

Educational Supplies & Childcare GST Free (3/8) Educational Supplies & Childcare School and university fees Certain coarse materials Student accommodation Professional and trade courses Approved childcare 4

Fresh Food and Beverages GST Free (4/8) Fresh Food and Beverages Food and ingredients for food for human consumption Beverages for human consumption and ingredients for such beverages Goods to be mixed with or added to food for human consumption (including condiments, spicings, seasonings, sweetening agents or flavourings) Fats and oils marketed for culinary purposes Any combination of any of the above 5

Other GST-Free Supplies Sale of a "going concern” A grant of crown land Certain sales of farm land Water, sewerage and drainage; Cars for disabled people 6

Calculations with GST (6/8) To find the GST multiply by 10%. Example: Calculate the amount of GST on a car costing $32 000. 10 100 GST = 10% 0.10 x $32 000 = $3 200 Example: Calculate the amount of GST on a tin of jam costing $1.65. 10 100 GST = 0.10 10% x $1.65 = $0.17 7

Calculations with GST (7/8) To find the Price + GST multiply by 110%. Example: Calculate the price + GST on a car costing $32 000. 110 100 Price + GST = 110% 1.10 x $32 000 = $35 200 Example: Calculate the price + GST on a tin of jam costing $1.65. 110 100 Price + GST = 110% 1.10 x $1.65 = $1.82 8

Calculations with GST (8/8) Given the Price+GST Divide by 110% to find the non-GST price Example: Calculate the pre-GST price on a car costing $35 200. 110 100 Pre-GST = $35 200 ÷ 110% 1.10 = $32 000 Example: Calculate the pre-GST price on a tin of jam costing $1.82. 110 100 Pre-GST = $1.82 ÷ 110% 1.10 = $1.65 9 9