1. What is Reverse GST and PST Calculation?

Reverse GST and PST calculation is the process of determining the pre-tax amount when you know the total amount including both GST and PST taxes. This is useful for accounting, expense tracking, and financial analysis.

2. How Does the Calculator Work?

The calculator uses the reverse tax formula:

Where:

• \( \text{Total} \) — Total amount including both GST and PST taxes
• \( \text{GST} \) — Goods and Services Tax rate (as decimal)
• \( \text{PST} \) — Provincial Sales Tax rate (as decimal)

Explanation: The formula reverses the standard tax calculation by dividing the total amount by 1 plus the sum of both tax rates.

3. Importance of Reverse Tax Calculation

Details: Reverse tax calculation is essential for businesses to determine the actual cost of goods before taxes, for accurate accounting records, and for preparing financial statements that separate product cost from tax obligations.

4. Using the Calculator

Tips: Enter the total amount including taxes, then enter the GST and PST rates as percentages. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between GST and PST?
A: GST (Goods and Services Tax) is a federal tax applied nationwide, while PST (Provincial Sales Tax) is a provincial tax that varies by province.

Q2: Can this calculator handle different tax rate combinations?
A: Yes, the calculator works with any combination of GST and PST rates, including when one rate is zero.

Q3: What if I only have one tax to reverse?
A: Simply set the other tax rate to zero. The formula will work correctly with just one tax rate.

Q4: Are the results accurate for business accounting?
A: Yes, the calculation follows standard accounting principles for reverse tax calculations.

Q5: Can I use this for HST calculations?
A: For HST (Harmonized Sales Tax), simply enter the total HST rate as the GST rate and set PST to zero.