Extract GST/HST from gross amounts instantly. Remove GST/HST from any price in seconds for freelancers, businesses, accountants, and construction contractors.
CALCULATOR DETAILS
Calculation Summary
Net Amount
0.00
Excluding Tax
GST/HST Amount
0.00
Tax Portion
10K+
Calculations Monthly
100%
Completely Free
No
Signup Required
CRA
Compliant Formulas
A simple breakdown of the math used to separate tax from your total amount.
Confirm the GST/HST percentage applied. For most Canadian goods, this is 5%.
Divide your gross amount by 1.20 (1 + Rate/100).
The answer is your Net Amount. The rest is the tax you pay.
Understanding the three main GST/HST rates in Canada
| Rate | Percentage | Examples |
|---|---|---|
| Standard Rate | 5% | Most goods and services (clothing, electronics, food services, accommodation) |
| Reduced Rate | 5% | Energy supplies, some food items, children's car seats, mobility aids |
| Zero Rate | 0% | Books, newspapers, most food products, exports outside Canada/Canadian |
Note: These rates apply to goods and services supplied in Canada. Different rules may apply to digital services, certain professional services, and supplies within Canada. Always check with CRA for specific cases.
Common reverse GST calculation examples
Standard Rate 5%
CA$120 Gross
Standard Rate 5%
CA$1,200 Gross
Reduced Rate 5%
CA$210 Gross
Zero Rate 0%
CA$50 Gross
Perfect for businesses, freelancers, and accounting professionals
Calculate GST/HST on invoices and expenses for accurate tax returns
Separate net and GST/HST for accounting software and CRA returns
Process multiple invoices quickly and accurately for clients
Handle GST/HST on marketplace sales and cross-border transactions
Calculate domestic reverse charge GST/HST under Construction Holdback scheme
Understanding the key differences
Net = Gross ÷ 1.20
Gross = Net × 1.20
Normally, when you buy goods or services, you pay GST/HST to the supplier, and they pay it to CRA. Reverse Charge GST/HST flips this process. Instead of paying GST/HST to the supplier, you (the buyer) account for the GST/HST on your own GST/HST return. You effectively charge yourself GST/HST and then reclaim it in the same return (assuming you are fully taxable), making it a cash-neutral transaction.
A Reverse GST Calculator is an essential tool for instantly determining the Net (pre-tax) amount from a Gross (total) figure. This is particularly useful when:
In Canada, the GST/HST domestic reverse charge for building and construction services prevents "missing trader" fraud. If you buy construction services that are reported under the Construction Holdback Rules (Construction Holdback), you generally do not pay GST/HST to the sub-contractor. Instead, you declare the GST/HST as output tax on your own return. Our calculator helps you quickly identify the specific GST/HST portion that needs to be withheld and reported.
In Canada, you must register for GST/HST if your annual turnover exceeds a certain threshold. The current threshold is CA$30,000 (as of April 2024). Once registered, you submit GST/HST returns to CRA quarterly. This calculator helps registered businesses manage their GST/HST obligations accurately.
CRA's CRA My Business Account initiative requires most GST/HST-registered businesses to keep records in digital format and file GST/HST returns using compatible software. Accurate GST/HST calculations, such as those provided by our reverse GST calculator, are essential for maintaining compliant digital records.
"Accuracy is key in accounting. Manually dividing by 1.2 is easy, but using a tool ensures you don't make rounding errors when dealing with large volumes of invoices."
Practical guidance to manage your GST/HST obligations
If your annual turnover will exceed CA$30,000, you must register for GST/HST. Registering early can also help with input tax recovery.
Maintain invoices, receipts, and transaction records for at least 6 years. This helps with GST/HST returns and protects you during CRA audits.
You can recover GST/HST paid on business expenses. Use invoices with GST/HST details to claim back input tax on your returns.
GST/HST returns are typically due quarterly. Late filing or non-payment can result in penalties and interest charges from CRA.
Don't claim GST/HST on private expenses, confuse net and gross amounts, or miss input tax recovery. Our calculator helps prevent calculation errors.
Compatible software integrated with our calculator can streamline GST/HST calculations and automate record-keeping for CRA My Business Account compliance.
Answers to common questions about reverse GST
To calculate the Net amount from the Gross, divide the Gross by 1 + (GST/HST Rate / 100). For Canada standard rate (5%), divide by 1.20.
It is essential when you have a total price (Gross) but need to record the pre-tax price (Net) and the GST/HST amount separately for tax returns or accounting software.
Yes. If you are a contractor receiving a service under the Domestic Reverse Charge, you can use this tool to calculate the GST/HST amount you need to pay to CRA instead of to the sub-contractor.
Canada has GST at 5% with provincial HST/PST rates: Standard rate (5%) applies to most goods and services, Reduced rate (5%) applies to energy and certain items, and Zero rate (0%) applies to books, food products, and exports.
From April 2024, the GST/HST registration threshold in Canada is CA$30,000. If your annual turnover exceeds this amount, you must register for GST/HST with CRA.
Yes. Our calculator uses the standard reverse GST formula: Net = Gross ÷ (1 + GST/HST Rate/100). This is the method recommended by CRA and used in all official tax guidance.