Article ID: 43 Created on: 10/23/2008 8:56 pm Modified on: 10/23/2008 8:56 pm
STEP (1): Set the location for your store:
Configuration --> My Store
- Country: Canada - Zone: Ontario
STEP (2): Create the "Tax Zones". The are geographical regions where a particular set of tax laws applies Locations/Taxes --> Zones Definitions
Create the Zone for all of Canada - Zone Name: Canada GST Zone - Description: GST (except Eastern Canada: NS, NB, NL)
Now click on the newly created "Canada GST Zone" row to drill down one level to "Sub Zones" Click INSERT to create 10 new sub-zones, one at a time:
- Country: Canada; Zone: Alberta - Country: Canada; Zone: British Columbia - Country: Canada; Zone: Manitoba - Country: Canada; Zone: Northwest Territories - Country: Canada; Zone: Nunavut - Country: Canada; Zone: Ontario - Country: Canada; Zone: Prince Edward Island - Country: Canada; Zone: Quebec - Country: Canada; Zone: Saskatchewan - Country: Canada; Zone: Yukon Territory
Click on "BACK" to go up one level. Now create the Ontario Provincial Tax Zone: Click Insert
- Zone Name: Ontario PST Zone - Description: PST (only when shipping to Ontario)
Now click on the newly created "Ontario PST Zone" row to drill down one level to "Sub Zones" Click INSERT to create new sub-zone:
- Country: Canada - Zone: Ontario
Click on "BACK" to go up one level. Now create the HST Tax Zone: Click Insert
- Zone Name: Eastern Canada - HST Zone - Description: NS, NB, NL
Now click on the newly created "HST Zone" row to drill down one level to "Sub Zones" Click INSERT to create new sub-zone:
- Country: Canada; Zone: Nova Scotia - Country: Canada; Zone: New Brunswick - Country: Canada; Zone: Newfoundland
Do NOT create a separate Tax ZONE for Shipping. You will simply use the "Canada" tax zone for the GST Shipping tax CLASS (below).
*** Important: this means that SHIPPING GST will only be charged to destinations within Canada, *** but NOT charged on exports. *** According to Canada Customs & Revenue Agency (1-800-959-5525), you do *NOT* charge GST *** on the shipping fee for EXPORTS.
STEP (3): Create the "Tax Classes"
Note: You can only assign ONE Tax CLASS to a product. But since we want shipping GST to show up separately, we will make a seperate Tax CLASS just for it.
Locations/Taxes --> Tax Classes
create TWO (2) tax classes:
- Tax Class Title: GST/HST/PST Class - Description: All taxable goods
- Tax Class Title: GST on Shipping - Description: GST on shipping within Canada
STEP (4): TAX RATES
Here is where it all comes together: Tax Rates. Tax RATES associate Tax ZONES & Tax CLASSES to determine the correct Tax Rate.
HINT: The "DESCRIPTION" is what shows up on the invoice, so use it judiciously!!!!!!!!!!!!!
Locations/Taxes --> Tax Rates
create SIX (6) Tax Rates:
- Tax Class Title: GST/PST/HST Class - Zone: Canada GST Zone - Tax Rate (%): 6.0000 - Description: 6.0% GST#99999 99999 RT0001 - Priority: 1
/*HINT: Insert your GST# as part of DESCRIPTION and it will show up on invoice !!! /*HINT: Leave PRIORITY at "1" for a non-cumulative tax (i.e. Ontario) - Tax Class Title: GST/PST/HST Class /* HINT: Yes, this is the same one you just used - Zone: Ontario PST Zone - Tax Rate (%): 8.0000 - Description: 8.0% PST (Ontario) - Priority: 1
/*HINT: Leave PRIORITY at "1" for a non-cumulative tax (i.e. Ontario) but change to "2" for cumulative tax (i.e. You are a Quebec store)
- Tax Class Title: GST/PST/HST Class /* HINT: Yes, this is the same one you just used - Zone: HST Zone - Tax Rate (%): 14.0000 - Description: 14% HST#R99999 9999 RT0001 - Priority: 1
That takes care of taxes on products. And now, the Shipping taxes:
- Tax Class Title: GST Shipping Class - Zone: Canada GST Zone - Tax Rate (%): 6.0000 - Description: 6.0% GST on shipping - Priority: 1
- Tax Class Title: GST Shipping Class - Zone: Ontario PST Zone - Tax Rate (%): 8.0000 - Description: 8.0% PST (shipping) - Priority: 1
- Tax Class Title: GST Shipping Class - Zone: HST Zone - Tax Rate (%): 14.0000 - Description: 14% shipping HST#99999 9999 RT0001 - Priority: 1
/* HINT: The above will calculate PST on shipping. Although there might /* be a tendenancy to think of shipping as a PST exempt service, in fact /* the Ontario Ministry of Finance says that for calculating the PST, /* "The total selling price includes delivery, mailing, transportation, or /* handling charges, but does not include the GST". With the above set-up, /* the PST for the shipping gets calculated (albeit separately). /* If you wanted them calculated together, you could assign "GST/PST/HST Class" /* as the Tax Class when setting up the shipping method. /* Personally, I prefer to break it out separately.
STEP (5): Specify the appropriate Tax Class for SHIPPING MODULES
MODULES --> SHIPPING
Edit whichever shipping module(s) you are using.
Tax Class: GST Shipping Class
/* SEE PREVIOUS HINT
STEP (6): Specify the appropriate Tax for PRODUCTS
This may take some time....
CATALOG --> Categories/Products
Drill down to each product. Click EDIT
TAX CLASS: "GST/PST/HST CLASS"
============== The following SQL statement would be helpful:
-------- UPDATE products SET products_tax_class_id = 1 WHERE products_model NOT LIKE 'GIFT%'; (you'd need to confirm that the desired products_tax_class_id = 1, first )
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