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Setup Canadian GST and PST rates? 
 
hardgristle
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Total Posts:  2
Joined:  2008-09-11
 

I’m in Canada and I have to charge customers from Canada PST and GST.

I can figure out how to add the PST (provincial sales tax) to each province but how do I add a blanket GST tax
to all Canadian custoemrs regardless of province?

Also, during checkout the tax just shows as “Tax” like this:

Subtotal $ 34.00
Shipping & Handling (Flat Rate - Fixed) $ 5.00
Tax $ 2.38
Grand Total $ 41.38

But ideally it would show like this:

Subtotal $ 34.00
Shipping & Handling (Flat Rate - Fixed) $ 5.00
PST $0.00 (I would charge PST at a zero rate for customers outside my province)
GST $ 2.38
Grand Total $ 41.38

Does anyone know if this is possible?

 
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Pierre-Luc
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I have a store and my base province is Québec, but the idea is the same.

I have three Tax Rates with the following config (didn’t put US Rate here):
GST
Name: GST
Country: Canada
State: *
Post code: *
Rate: 5

QST
Name: QST
Country: Canada
State: Québec
Post code: *
Rate: 7.5

Then in Tax Rules, create two rules. The key here is priority. I don’t know how taxes are calculated in other provinces, but here it’s this way:

The taxes are calculated as follows on a taxable item with a selling price of $100:
Selling price: $100.00
+ GST ($100 x 5%) = $5.00
+ QST ([$100 + $5] X 7.5%) = $7.88
Total: $112.88

For Québec, set the Tax Rule for GST at Priority 1 and QST(PST) at Priority 2, this way, the sales taxes correctly add up.

To test it out, I create a fake item that costs 100$, that way you can see exactly how much the taxes are. I haven’t tried to show both taxes separated yet, and don’t think I will try it anyway.

 
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hardgristle
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Total Posts:  2
Joined:  2008-09-11
 

Hi Pierre-Luc,

Thanks for the advice. I gave it a try and everything looks good so far.

I’ve noticed one other bug though that seems to be part of Magento and will definitely cause customer confusion.

On step 1 of checkout (Billing Info) you’ll see a “Country” Menu. If I signed up as a Candian customer this menu
will default to Canada. The problem is however that the “State/Province” menu is still stuck on the US states so
a customer has to have the brians to change the country to another country, then change it back to Canada in order
to see the correct Province menu.

This is a pretty daft bug. Do you have a workaround for this?

Cheers
Gavin

 
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fchaput
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What do you do for HST in Atlantic province ?

 
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inyerface
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Total Posts:  31
Joined:  2008-08-29
 

The taxes are really easy to set up (that is once you know how the heck the system works)… Follow these steps for a seemless setup.  This setup is based on a company selling Retail Products from Ontario.

1) Go to Sales > Tax > Manage Tax Zones and Rates

2) Create the following:

- GST, Canada, *, *, 5.0000
- HST(NB), Canada, New Brunswick, *, 13.0000
- HST(NF), Canada, Newfoundland, *, 13.0000
- HST(NS), Canada, Nova Scotia, *, 13.0000
- PST, Canada, Ontario, *, 8.0000

3) Go to Sales > Tax > Manage Tax Rules

- Select the defaul Retail Customer-Rate 1 (I changed mine to say Retail Customer - Canadian Taxes)

4) Select all values EXCEPT for PST

- Customer Tax Class: Retail Customer
- Product Tax Class: Taxable Goods and Shipping (if you want to tax shipping and in Canada you MUST)
- Product Tax Class: Select (GST, HST(NB), HST(NF), HST(NS))

5) Go to Sales > Tax > Manage Tax Rules

- Create a NEW Retail Customer-Rate 1 (Ontario Specific)

6) Select Retail Customer, Both Taxable Goods and Shipping, and ONLY PST.

- Priority: 1 (This will ADD the PST on top of GST)
- Sort order: 2

7) Done

SEE ATTACHMENT

Image Attachments
screen.gif
 
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btbc
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Total Posts:  95
Joined:  2008-06-11
 

inyerface, thanks for the info. It was EXTREMELY helpful.

I didn’t know that we tax shipping? I have to call in and triple check as that complicates things.

Right now, my taxes *seem* fine but I’ll make changes based on your model. Might as well fix things early on then pay the piper later on.

 
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inyerface
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I’ve update my post above starting at item 4.  Why?

I had noticed that GST+PST for Ontario residents were calculating at 13% and our bookkeeper would not like this… we need separate GST and separate PST for accounting purposes. 

The bottom works for us.

“btbc” please let us know if you find other information about taxable shipping… but in the end we are offering shipping as a service and we can marke it up if we want so at the bare minimum we should collect GST.

Good luck everyone.

PS:  We have also created the Inyerface Import System (damn I wish we could take IIS as an acronym) which allows you to import using a Primary Category name (not ID’s) and up to 5 sub-category names.  THe we have 5 “shop by” options and the tier pricing is also included in the sheet. 

PPS:  We are now creating drop down menus for those looking to narrow down their search usign dropdown <select> lists… often useful for printer shops i.e.: Printer Models.... HP 8800, HP 8810, HP 8100, Etc…

Have a great day!!

 
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inyerface
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Total Posts:  31
Joined:  2008-08-29
 

Compound tax would be used in Canada if you are a Quebec company selling in Quebec.  In this case you would create it like this:

1) Go to Sales > Tax > Manage Tax Zones and Rates

2) Create the following:

- TVQ, Canada, Quebec, *, 7.5000

3) Go to Sales > Tax > Manage Tax Rules

- Create a NEW Retail Customer-Rate 1 (Ontario Specific)

4) Select Retail Customer, Both Taxable Goods and Shipping, and ONLY TVQ.

- Priority: 2 (This will calculate the subtotal of the TPS(GST) and then calculate the TVQ on that sub-total)
- Sort order: 3

Canada certainly didn’t make it easy and it took me KPMG to figure this stuff out… I hope I was helpfull..

M

 
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bababuj
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Joined:  2008-11-14
 

I just found this thread and it has been extremely helpful. I’ve followed the instructions and taxes are calculated correctly for my Canadian customers, but the question still remains how to show and record gst and pst separately? It doesn’t look like it is possible. Wouldn’t that cause trouble with accounting?

 
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computerdan
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Total Posts:  4
Joined:  2008-04-24
 
inyerface - 20 November 2008 02:35 PM

The taxes are really easy to set up (that is once you know how the heck the system works)… Follow these steps for a seemless setup.  This setup is based on a company selling Retail Products from Ontario.

{snip}

Thanks for all the information on setting up CDN taxes.  However, would you have any ideas on how to create a system where you would also have products which are PST exempt?  That is, the following types of products are on my site:

- products which are GST+PST (Ontario)
- products which are GST Only (PST exempt in Ontario)
- products which are Tax exempt or “GST zero rated & PST Exempt” (both GST & PST - for example baby formula)
- shipping in all scenarios are GST or GST+PST (in the case of Ontario)

Many thanks in advance!

Daniel

 
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inyerface
Member
 
Total Posts:  31
Joined:  2008-08-29
 

Hi Daniel,

You have product classes and customer classes if I’m not mistaken (sorry I’m not logged in nor on a regular PC)?

The product class would cover item #3 on your list.  You’re right Baby formula isn’t taxed nor is children’s clothing up to a certain size (20 months maybe??) and show site (size 12 maybe??) - you would have to verify this in your prpovince.  So what you would do is create a new product class and associate the new tax rules to this product class… or just keep GST and PST deselected for this product.  Then, when you create or edit your product you select the correct rpoduct class,

The customer class would be useful for PST exempt customers.  For example, people on reservations or the federal Government is PST exempt so you would need to combine this with the Postal Code search… Well, that’s my guess based on what I know about Magento’s core to date (Magento isn’t the easiest system in the world so please forgive me if I’m wrong I’m still learning)… for exmaple our Federal Government uses generic postal codes base don the region they ar ein and they are unique to the Federal Government for example K1A 0H4 is used for the Portage and Eddy buildings in Gatineau/Ottawa.

I am going to be investigating this as we get closer to our clients’ launch date and I’ll post back when I get more.  And let me know if you dig deper and get some answers.

Thanks.

 
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inyerface
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bababuj - 21 November 2008 09:07 PM

I just found this thread and it has been extremely helpful. I’ve followed the instructions and taxes are calculated correctly for my Canadian customers, but the question still remains how to show and record gst and pst separately? It doesn’t look like it is possible. Wouldn’t that cause trouble with accounting?

Hey while I’m here I just wanted to comment on this…

If you follow the above instructions the accounting system in Magento will seperate the GST and PST for you… your clients are responsible for their own so I wouldn’t worry about it personally.

 
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computerdan
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To inyerface:

THANK YOU!

Daniel

 
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christ
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Joined:  2008-04-04
 

below

 
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christ
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Thank you very inyerface, this is an invaluable guide.

I am running into a few problems though and would love input from yourself or others.

I’ve set up my ontario based magento install, following your tax instructions and am now able to process orders with the required canadian taxes.

I have run into difficulty with the taxation break out though.

It is my understanding that both pst and gst/hst need to be itemized on our invoices.

So far I am unable to do so.

I’ve attached screen shots of my front end cart checkout page as well as my back end tax rules page.

Any instruction is greatly appreciated.

Thanks!
Christ.

PS/NB. It is also my understanding that it is required to display your gst/hst number on each sale. I haven’t done this yet but for others they can do so by editing the tax rules to include the gst/hst numbers in their rule name.

Image Attachments
taxes.pngmanage_tax_rules.png
 
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coeus
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Here is an export of the rates as displayed in the above image:

"Code","Country","State","Zip/Post Code","Rate","default"
"PST (Ontario)"
,"CA","ON","*","8.0000",""
"GST (Canada)"
,"CA","*","*","5.0000",""
"HST(NB)"
,"CA","NB","*","13.0000",""
"HST(NS)"
,"CA","NS","*","13.0000",""
"HST(NF)"
,"CA","NF","*","13.0000",""
"PST (British Columbia)"
,"CA","BC","*","7.0000",""
"PST (Manitoba)"
,"CA","MB","*","7.0000",""
"QST (Quebec)"
,"CA","QC","*","7.5000",""

Copy and Paste that into a new file and named i “canadian_taxes.csv” .. then import these rates into Magento. All you have to do is then set up the Tax Rules according to the way ChrisT has displayed in the image he uploaded.

 
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