Goods and services tax (GST) is a type of indirect tax levied on goods and services that is commonly found in Canada and the Asia-Pacific region. The customer pays it, and the business remits it to the tax authority. It’s very similar to value-added tax (VAT), and it is applied at each stage of the supply chain. GST is included in the final total cost, and it’s ultimately paid by the end customer.

In some countries with GST, the tax is levied at the federal level, but there are additional regional taxes businesses need to consider. In Canada, businesses need to charge provincial sales taxes (PST) in certain provinces in addition to charging GST. However, certain provinces have adopted a harmonized sales tax (HST) that combines GST and PST into one tax.

Select the country from the drop-down menu on our GST calculator, then click “Calculate.” In the calculation results, the tax rate shown is the standard GST rate for the selected country. Depending on the country and the item you’re selling or buying, it may be subject to a different rate. For example, in Canada, certain goods and services are exempt from GST—such as basic groceries and some educational services.

The United States uses terms such as sales tax and countries within Europe use VAT instead of GST. If you’re interested in calculating indirect tax rates for countries that don’t use GST, try our sales tax calculator (for the US) and VAT calculator (for countries in the EU).

To calculate the GST-inclusive price, add the GST amount to your pretax price. First, identify the GST rate and convert it to decimal form by dividing by 100. Then, add 1 to the GST rate in decimal form, and multiply the result by your pretax price. This gives you the GST-inclusive price.

Note: When using tax-inclusive prices with Stripe Tax, the amount your buyer pays remains constant, regardless of the tax amount.

A GST-exclusive price is the amount before tax is applied. To determine this value from a GST-inclusive price, identify the GST rate and convert it to decimal form by dividing by 100. Then, take your GST-inclusive price and divide it by the sum of 1 plus the GST rate in decimal form. The final amount is your GST-exclusive price.

For example, if a sweater has a GST-inclusive price of $55 and the GST rate is 10%, you first convert the GST rate to decimal form by dividing by 100, which is 0.10. Next, add 1 to the GST rate in decimal form, and divide your GST-inclusive price of $55 by that sum:

$55 ÷ (1 + 0.10) = $50

The result is your GST-exclusive price of $50.

Yes, GST can vary by product, service, location, and other factors. Certain goods and services might be taxed at different rates, or they might be exempt. Countries that use GST have different regulations, thresholds, and tax remittance procedures. For example, in Canada, GST is used nationally but certain provinces might charge an additional provincial sales tax.

If you need to calculate GST for a specific type of product, or if your business operates in multiple jurisdictions, you can easily calculate GST through Stripe Tax. Refer to the list of product tax codes (PTCs) for more information about the different product types that Tax supports.

The threshold to collect GST varies by country. For example, a remote seller supplying goods and services in Canada must register for federal GST/HST when they make sales in Canada exceeding $30,000 CAD within the past four calendar quarters. While in Singapore, remote sellers must register for GST under the Overseas Vendor Registration regime if in a calendar year they (1) have a global turnover exceeding $1 million SGD and (2) make B2C supplies of digital services to customers in Singapore exceeding $100,000 SGD. Global turnover refers to all supplies made that would be taxable supplies if made in Singapore.

To ensure that your business is compliant, check with the specific tax laws in the country where you make sales to understand your tax obligations. Refer to our latest guide for more on global tax compliance.

In most countries with GST, businesses are required to register with the tax authorities before they begin collecting GST from customers. Businesses can register online on the appropriate tax authority website. Learn more about how to register to collect GST in Canada, and how to register in other countries with GST. Or, let Stripe Tax manage your GST registrations and benefit from a simplified process that prefills application details from your Stripe account and automates tax collection.

Submitting a GST return is the final step to compliance. If you have not collected GST from customers in a period and have no tax to remit, you might still need to file your return by the due date. Each country has its own return forms and filing frequency. Your due date and how often you file could depend on your annual sales revenue.

Filing frequency varies by country and business revenue, but businesses can usually submit returns and payments online. Failure to file and remit the correct amount of GST can result in interest and penalties.