GST (Goods and Services Tax)
AccountingA value-added tax on the supply of goods and services, charged at each step of the supply chain and ultimately borne by the end consumer.
Detailed Explanation
Examples
- An Australian invoice shows the subtotal, 10% GST, and the GST-inclusive total
- A Singapore SaaS company adds 9% GST on services sold to local customers
Quick Q&A
What is GST (Goods and Services Tax)?
A value-added tax on the supply of goods and services, charged at each step of the supply chain and ultimately borne by the end consumer.
What does "GST (Goods and Services Tax)" mean?
GST is the name used in countries such as Australia, New Zealand, Canada, Singapore, India, and Malaysia for what is functionally a value-added tax (VAT). Registered businesses charge GST on their sales (output tax) and reclaim GST paid on their purchases (input tax), remitting the net amount to the tax authority. GST rates and rules vary by country: Australia and New Zealand use a single rate (10% and 15%), Singapore uses 9%, India uses a multi-slab structure (5/12/18/28%), and Canada combines a federal GST with provincial sales taxes (PST/HST). An invoice subject to GST must show the supplier's GST/ABN/BN number, the GST rate applied, and the GST amount as a separate line.
When is GST (Goods and Services Tax) used?
An Australian invoice shows the subtotal, 10% GST, and the GST-inclusive total ; A Singapore SaaS company adds 9% GST on services sold to local customers