The global sales tax for Bc is calculated from provincial sales tax (PST) BC rate (7%) and the goods and services tax (GST) in Canada rate (5%) for a total of 12%.
Amount with sales tax / (1+((GST and PST rate combined)/100)) = Amount without sales tax
Amount with sales taxes x (GST rate/100) = Amount of GST in BC
Amount without sales taxes x (PST rate/100) = Amount of PST in BC
1000$ / (1+((5+7)/100))
1000$ / 1.12 = 892.86$
892.86$ x (5/100) = 44.64$ (GST)
892.86$ x (7/100) = 62.50$ (PST)
When you buy a product in British-Columbia, something called GST or PST is applied to your total. The total on your receipt shows you the cost you paid for the product with sale tax included. If you need to eliminate sales tax from the original cost of your buy and find only the cost of the product being referred to (if the receipt doesn’t itemize this for you), you can do so using a calculator. Look no farther than this reverse tax calculator for British Columbia. This reverse calculator considers all GST and PST for British Columbia in Canada.
A reverse Sales tax calculator will let you know the pre- tax cost of an item or service when the total cost and tax rate are known. This calculator figures out the total cost before tax and the tax amount that is dependent on the final cost and sales tax percentage. The reverse sales tax formula tells you the best way to analyze reverse sales tax. Enter the Amount with taxes and select PST type, and the reverse tax calculator shows you the Amount without taxes.
All sales made in BC distinguish into three categories: those that are taxable, those are zero- rated (which means they are taxable yet are taxed at 0%) and those that are Exceptions to PST. It is necessary to figure out where your item list falls so that a right tax rate can be applied to your clients’ invoices.
In some conditions PST shouldn’t be paid on buys or rents. The following exceptions are accessible to each and do not need any credentials that includes basic groceries, books, kids garments, doctor prescribed medications, and so on. When you give an exception to a client you should keep exact data in your records to show why you didn’t charge sales tax. If you don’t do this, you can be charged for the tax that should have been collected in addition penalties and interest.