Value added tax in Singapore is collected in the form of goods and service tax. Here, GST was introduced in 1994 at 3 % and has gradually been increased to the current rate of 7 %. Any company is required to collect Goods and Services Tax only if the turnover exceeds 1 million dollars. Goods and Services Tax in Singapore is not applicable on export of any goods or services.
Value added tax in Singapore is collected in the form of goods and service tax. Here, GST was introduced in 1994 at 3 % and has gradually been increased to the current rate of 7 %. Any company is required to collect Goods and Services Tax only if the turnover exceeds 1 million dollars. Goods and Services Tax in Singapore is not applicable on export of any goods or services.
Find the VAT price and net price in Singapore (GST % is 7) for an amount of 25000 $
Solution :
GST % = 7
Amount = 25000
Step 1 :
GST Price = (25000 * 7 ) / 100
= 1750 $
Step 2 :
Net Price = 25000 + 1750
= 26750 $
Hence the VAT Price is 1750 $ and Net Price is 26750 $
Solution :
GST % = 7
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 7)))
= 25000 - (25000 * 0.93)
= 25000 - 23364.49
= 25000 - 23364.49
GST Price = 1635.51 $
Step 2 :
Net Price = 25000 - 1635.51
= 23364.49 $
Hence the VAT Price is 1635.51 $ and Net Price is 23364.49 $
