Have you ever paid the bill for your friends but have some of them pay you back the wrong amount? Or worse, without Goods and Services Tax (GST) and service charge?
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Well, for small bills, it might cost you a dollar or two which isn’t a big deal.
But when you’re out with a big group or spending at an expensive restaurant, you may be paying north of $10 or more!
So here’s exactly how to calculate GST and service charge so you can pay your friends the right amount or get it back!
P.S. It’s not just a simple 118% of the stated price!
How to Calculate GST and Service Tax
To calculate GST and service tax, you will need to multiply 1.188 (or 1.199 from 2024 onwards) to the price of the meal or product.
The reason why it’s not a simple 1.18 multiplication is because the GST is applied on the price of the good AND the service charge....