Add GCT
- Price excl. GCT:
- $0.00
- GCT 15%
- $0.00
- Total incl. GCT:
- $0.00
How to calculate the GCT amount?
The selling price can change depending on the final cost of your goods or services. However, the tax percentage is subject to the amount required by the Tax Agency. Considering this, how was the amount of $299.00 calculated in the previous example?
To answer this, you need to use the corresponding formula. First, you divide 15%, which is the GCT percentage, by 100. This will give you a result of 0.15.
In other words:
Then, you multiply the selling price, also known as the taxable amount, by the percentage. According to the example, this is $260.00 (which is the taxable amount) times 0.15 (the result of the above formula). This equals $39.00 (GCT amount).
The equation looks like this:
This is the total price of the hay including GCT: $299.00
How to calculate the total price with GCT included?
There is a simple, efficient and quick way to do this that will help you calculate the total amount or cost including GCT using a well-known formula. It consists of adding a one to the tax percentage that we saw earlier: 1 + 0.15 = 1.15
Then, you multiply this number by the taxable amount, or selling price, which according to the example is $260.00. After multiplying these, you will notice that it gives you a result with GCT already included (total amount), which is $299.00.
The formula looks like this: