1. What is GST?

GST (Goods and Services Tax) is a value-added tax levied on most goods and services sold for domestic consumption. In New Zealand, the standard GST rate is 15%.

2. How Does the Calculator Work?

The calculator uses the GST formula:

Where:

• \( Price \) — The original price before GST ($)
• \( Rate \) — The GST rate as a percentage (%)

Explanation: The formula calculates the GST amount by multiplying the price by the tax rate (converted from percentage to decimal).

3. Importance of GST Calculation

Details: Accurate GST calculation is essential for businesses to correctly price goods and services, file tax returns, and comply with tax regulations.

4. Using the Calculator

Tips: Enter the price in dollars and the GST rate as a percentage. The standard NZ rate is 15%, but you can enter any valid rate.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard GST rate in New Zealand?
A: The standard GST rate in New Zealand is 15% for most goods and services.

Q2: How do I calculate the total price including GST?
A: Total Price = Original Price + GST Amount, or Total Price = Original Price × (1 + Rate/100)

Q3: Are all goods and services subject to GST?
A: Most goods and services are subject to GST, but there are some exemptions such as financial services and residential rent.

Q4: How often do businesses need to file GST returns?
A: In New Zealand, businesses typically file GST returns monthly, two-monthly, or six-monthly depending on their turnover.

Q5: Can I claim back GST on business expenses?
A: Yes, registered businesses can claim back the GST they've paid on business-related expenses and purchases.