Goods and Services Tax (VAT) is collected in New Zealand at the standard rate of 15 % from 1st October 2010. Some of the zero-rated supplies includes exported goods and services, supplies of going concerns, certain supplies of fine metal, supplies of financial services. Goods and Services tax was introduced by Fourth Labour Government of New Zealand. End users pay tax directly since GST is included in the price of the products.
Goods and Services Tax (VAT) is collected in New Zealand at the standard rate of 15 % from 1st October 2010. Some of the zero-rated supplies includes exported goods and services, supplies of going concerns, certain supplies of fine metal, supplies of financial services. Goods and Services tax was introduced by Fourth Labour Government of New Zealand. End users pay tax directly since GST is included in the price of the products.
Find the VAT price and net price in New Zealand (GST % is 15) for an amount of 25000 $
Solution :
GST % = 15
Amount = 25000
Step 1 :
GST Price = (25000 * 15 ) / 100
= 3750 $
Step 2 :
Net Price = 25000 + 3750
= 28750 $
Hence the VAT Price is 3750 $ and Net Price is 28750 $
Solution :
GST % = 15
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 15)))
= 25000 - (25000 * 0.87)
= 25000 - 21739.13
= 25000 - 21739.13
GST Price = 3260.87 $
Step 2 :
Net Price = 25000 - 3260.87
= 21739.13 $
Hence the VAT Price is 3260.87 $ and Net Price is 21739.13 $
