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

2 GST & VAT (1/9) GST 10% The GST is a 10% tax on the purchase price of most items. G G oods and ST S ervices T ax VAT UK VAT is similar to GST and is used in many countries, such as the UK VAT The percentage used with VAT varies from country to country V AT V alue A dded T ax

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.

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

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

GST Free (5/8) 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

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

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

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