Calculators

Reverse Calculate the BC sales taxes GST and PST

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Current GST and PST rate for British-Columbia in 2020

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%.

British Columbia HST

On April 1st 2013, the government removed the HST and replaced it by provincial sales tax (PST) and GST in British-Columbia

See the website of the Canada Revenue Agency

Formula for calculating reverse GST and PST in BC

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

Example

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)

Reverse Sales Tax Calculator British Columbia (PST/GST)

Canada has two main types of taxes:

  • Goods and services tax (GST) that is assessed by the federal government.
  • Provincial sales tax (PST)which is assessed by provincial governments.

Goods and Services Tax (GST)

As of January 1, 1991, Canada changed from a federal sales tax to a federal value added tax, which is the Goods and Services Tax (GST).  Provincial taxes are still computed as a sales tax.

The Canadian GST is inspired from European value added taxes (VAT). What differentiates GST from most other countries using VAT is the inclusion of Provincial Sales Tax (PST) in the total calculation.

Provincial Sales Tax (PST)

PST can be calculated in either of the two ways.   Although the PST is always calculated after the GST is calculated, however, in some scenarios, it is based on the pre-GST value and in other cases it is based on the value after GST has been added. Each province may have different PST rates

Margin of error for sales tax

An error margin of $ 0.01 may appear in reverse calculator of sales tax in British Columbia.

Due to rounding of the amount without sales tax, it is possible that the method of reverse calculation charges does not give ($ 0.01 to close) the total of sales tax used in every businesses in BC.

Goods and services tax calculation for provinces of Canada

Regarding the sale of books, only the GST must be taken into consideration in this type of calculation. However, in some provinces, the Harmonized Sales Tax (HST) must be used.

Visit the British-Columbia Provincial sales tax page for more information.

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