More on Sales Taxes - GeneralidearegardingSales Taxes GST,...

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General idea regarding Sales  Taxes GST, PST, HST
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GST – Goods and Service Tax Federal sales tax Value-added tax (VAT) : A tax based on the increase in value or priced of a product at each stage in its manufacture and distribution. Current rate: 5% More information? Go to http://www.cra-arc.gc.ca/ then search for “GST”
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GST – Example Sale of wool: $50.00 GST (5%) 2.50 Total invoice: $52.50 GST remitted: $2.50 Sale of sweater: $90.00 GST (5%) 4.50 Total invoice: $94.50 GST collected Sale: $200.00 GST (5%) 10.00 Total invoice: $210.00 GST collected $10.00 Less: GST paid 7.50 GST remitted: Retailer manufacturer Supplier Wholesaler Sale: $150.00 GST (5%) 7.50 Total invoice: $157.50 GST collected $7.50 Less: GST paid 4.50 GST remitted: $3.00 Consumer
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GST – Goods and Service Tax Although the previous example considered on the tax paid on purchases directly related to the production or distribution of the product, a business is allowed to claim the GST paid on all expenses related to taxable sales. This might include GST paid on such things as
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This note was uploaded on 10/26/2011 for the course ACCT 3410 taught by Professor Jobs during the Spring '11 term at Kwantlen Polytechnic University.

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More on Sales Taxes - GeneralidearegardingSales Taxes GST,...

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