Calculating GST Due on a Purchase

• 1). Calculate the total base cost of the Canadian goods and services you are purchasing.
  
  
• 2). Multiply the amount of your purchases by 0.07. The total is the amount of GST you must remit.
  
  
• 3). Add the amount of GST owed to the base cost of your purchases to determine the total bill.
  
  

Calculating GST Remitted from Exempt Purchases

• 1). Download a copy of the general GST/HST rebate application.
  
  
• 2). Locate the "Reason" code that applies to your purchase. There are 23 valid "Reason" codes. Pages 8 to 23 of the instruction packet give details on eligibility for each exemption.
  
  
• 3). Calculate the GST rebate you are owed based on your reason code for exemption.
  
  If you have cited reason codes 1, 4, 5, 8, 10, or 11, you are exempt from all GST that would otherwise be charged for your purchases. You are owed a full refund.
  
  
• 4). Calculate your partial refund if your exemption falls under any of the other "Reason" codes. The partial-refund amounts vary by reason. The Canadian government supplies the specific formula for calculating each partial-GST refund under the descriptions of the reason codes on pages 8 to 23 of the instruction packet.