Difference between revisions of "GST Free Portion Calculation"

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(Created page with "There may be occasions where a component of an invoice is GST Free but is not itemised and you need to calculate it manually, this page will explain how to do so.")
 
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There may be occasions where a component of an invoice is GST Free but is not itemised and you need to calculate it manually, this page will explain how to do so.
 
There may be occasions where a component of an invoice is GST Free but is not itemised and you need to calculate it manually, this page will explain how to do so.
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Total on Invoice = $546. GST for that amount should be $49.63
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GST on Invoice = $32. GST amounts don't add up, that means there is a portion of the total that is GST Free.
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To calculate that amount, use the following equation.
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GST x 11 = a
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Invoice total - a = b
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GST = GST as written on invoice
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Invoice total = Total as written on invoice
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a = portion that has GST
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b = portion that is GST free
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Example:
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Total on Invoice = $546
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GST = $32
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$32 x 11 = $352
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$546 - $352 = $194
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$352 = Portion with GST
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$194 = Portion without GST (GST Free)

Revision as of 05:23, 8 February 2016

There may be occasions where a component of an invoice is GST Free but is not itemised and you need to calculate it manually, this page will explain how to do so.

Total on Invoice = $546. GST for that amount should be $49.63 GST on Invoice = $32. GST amounts don't add up, that means there is a portion of the total that is GST Free.

To calculate that amount, use the following equation.

GST x 11 = a Invoice total - a = b

GST = GST as written on invoice Invoice total = Total as written on invoice a = portion that has GST b = portion that is GST free

Example:

Total on Invoice = $546 GST = $32

$32 x 11 = $352 $546 - $352 = $194

$352 = Portion with GST $194 = Portion without GST (GST Free)