Add Tax: Calculates the tax on top of a pre-tax (exclusive) price. E.g. RM100 + 6% = RM6 tax → RM106 total.
Remove Tax: Extracts the tax from a tax-inclusive price (gross amount). E.g. RM106 inclusive → RM100 base + RM6 tax.
To add GST to a price: multiply the price by the GST rate (e.g. 10% = 0.10) and add it to the original price. Formula: Total = Price x (1 + GST rate). For example, $100 + 10% GST = $100 x 1.10 = $110.
To remove GST from a GST-inclusive price: divide by (1 + GST rate). For example, to find the pre-GST price from $110 with 10% GST: $110 / 1.10 = $100. The GST amount is then $110 - $100 = $10.
Australia's GST rate is 10%, introduced on 1 July 2000. It applies to most goods and services. Some items are GST-free, including basic food, medical services, and educational courses.
VAT (Value Added Tax) and GST (Goods and Services Tax) are both consumption taxes applied at each stage of production. Sales tax (common in the US) is only applied at the final point of sale. They work similarly but differ in implementation across countries.
Malaysia replaced GST with SST (Sales and Service Tax) in 2018. The sales tax rate is 5% or 10% depending on product category. Service tax is 6% for most services (food, telecoms) and 8% for other services from 2024.