In today's class we started with mental math on spreadsheets. When we finished correcting the papers, Mr.Kuropatwa began talking about Sales Tax.
- Sales Tax consists of GST and PST:
GST: Goods & Services Tax (if buying basic needs such as food, clothes)
PST: Provincial Sales Tax
Mr.Kuropatwa had told us about taxes and how they change every year. He also mentioned a thing or two about what kind of things were never taxed. Such as books, because they contain information to educate, and food because its basic requirement.
Goods & Services Tax
Some examples of GST would be:
- If you buy 6 dozen muffins, you won't be taxed.
- If you buy less than 6 items, you were buying a "service".
- Buying 6 muffins you wouldn't get taxed. (prepared foods)
- A haircut is not a good, it's a service.
- Getting a car fixed is buying a service, which means you get taxed.
Provincial Sales Tax
- anything sold in a province gets taxed.
- used car - no GST
- new car - both GST & PST
Some provinces have HST such as New Brunswick, P.E.I and Quebec. HST stands for Harmonized Sales Tax.
We were given an example to find the Final price of a new computer when taxes are included
EXAMPLE: Dave lives in Nelson, British columbia. How much tax will he have to pay to buy a new computer that costs $2565.00? What will be the final price when taxes are included.
Step (1) Look for B.C tax, PST: (7%) GST (6%)
(2) Find 6% (6/100=0.06)
Find 7% (7/100=0.07)
(3) Multiply the percentage by the cost of the computer:
GST: 0.06 x $2565.00 = $153.90
PST: 0.07 x 2565.00 = $179.55
(4) To find the total tax, add the PST and GST together to get the answer:
$153.90 + $179.55 = $333.45
Next Scribe will be ... Kay-Ti