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

2. 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

3. 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

4. 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

5. 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

6. 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

7. Calculations with GST (6/8)
To find the GST multiply by 10%.
Example: Calculate the amount of GST on a car costing $ 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

8. Calculations with GST (7/8)
To find the Price + GST multiply by 110%.
Example: Calculate the price + GST on a car costing $
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

9. 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 $
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