Amount without sales taxes x (GST rate/100) = Amount of GST in AB
Amount without sales tax + GST amount = Total amount with sales tax
50$ x (5/100) = 2.50$ (GST)
50$ + 2.50$ = 52.50$
Taxes are mandatory payments by citizens and companies to the government. They are taxed to finance government services, reorganize income, and persuade the behavior of customers and investors. Taxes in Canada are destination-based, meaning that the sales tax rate is based, or determined from, the intentional location a product or service is shipped to. This makes difficult business for retailers who need to have the accurate and current sales tax rate for every delivery they make.
The tax applied on the final sale of an item or service in Alberta is called Sales Tax. Alberta is the only region in Canada that does not include a provincial sales tax. Products and services are charged just the federal 5% Goods and Services Tax (GST). While Alberta’s sale tax was eventually increased in 2015, the region remains one of the most reduced taxed districts in Canada.
Looking for an Alberta Tax Calculator to understand your sale tax commitments? Use our sales tax calculator to figure how much tax you will pay in Alberta. This is a very simple GST/PST calculator for the Alberta region. Enter Amount without taxes and select “PST type”. Now click on the “Calculate” button. GST and PST value and price including GST/PST will be calculated. Accordingly, it is suggested that citizens use a tax calculator, which has all the equations worked in, instead of attempting to figure their tax obligation manually.
There are two types of exemptions for GST: direct exemptions and zero-rated products and services. The thing that matters is identified with how businesses handle costs identified with the exemptions, but as a buyer, you would not need to pay GST on products from either category. Goods and services that are zero-rated from GST include: Basic groceries, Prescription drugs, Medical devices, Feminine hygiene products, and etc.