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LukeBrown
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lilsilverprints, post: 200705 wrote:
Hi all, a question on donations and GST calculations……. I donate 15% of the order total from some specific sales to a set charity. To date, I have donated 15% of the total price which includes the GST …. should I be actually be working out the 15% without the GST added?

I hope this makes sense and I’m sure there is a logical answer but my brain is currently fried from doing my bank reconciliation!!

TIA!

If your aim is to donate 15% of your net revenue, then you calculate the 15% based on the excluding GST figure. The GST isn’t really your revenue, you’re just collecting it on the behalf of the government.

In your current arrangement, you are actually donating 16.5% of your net revenue, so not a huge difference.