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  1. #1
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    Default Tax problem--I have no clue!

    Okay, my problem is complicated. I purchased a pre-configured site from a Canadian Norwex consultant. I live in Ohio in the US. The site was initially configured fine for all the different Canadian provinces and their sales tax set up. However, there was only a 5% flat tax applied to the US sales at the time, because she was selling from Canada to the US. The company itself is in Canada, so tax is charged based on the shipping address, not the billing one.
    1. Do I need to go through and configure the taxes for each of the states separately?
    2. If so, what do I label it as in the Tax Classes (following the ZenCart tutorial where it does the set up for Colorado, I set one up for Ohio but it doesn't seem to be working).
    3 Is there some way I can apply the change in class across all my products or do I have to do it individually?

    Sorry for all the questions. I'm obviously new at this and reading all the tutorials and FAQs and several threads on here just got me more confused than when I started! Thanks!

  2. #2
    Join Date
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    Default Re: Tax problem--I have no clue!

    Where is this company based out of? Does this company have offices in any other Provinces or offices in the US?

    In Canada everyone pays the GST = 5% (Federal Sales Tax)

    Now in each Province there is an additional tax called the PST. Some provinces like Alberta do not have this tax and some provinces Like Quebec have HST (soon to be Ontario as well in July) HST simply put, is the collection of GST and PST in one Tax.

    Only setup taxes for places that you are required to TAX

    Senario 1:
    OK so you have a company in Canada who is located in the Province of Ontario. You should collect GST and PST for Ontario Customers and GST for all other Canadian customers. If you sell to the USA or other countries you do not collect or charge tax.

    Senario 2:
    You have a company based in Ontario and have offices in BC, Manitoba and Quebec. You will charge the GST to all sales within Canada. You will also charge PST to all the Provinces that you have an office in and HST only for Quebec.

    Senario 3:
    If the company is based in Canada and you have an office in the USA, you must also charge and remit US taxes if shipped and invoiced from US office or if Shipped from Canada, do not charge tax as it will be due at import.
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  3. #3
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    Default Re: Tax problem--I have no clue!

    I think my problem more closely resembles situation number 3. Company is Norwex (www.norwex.ca) that is based out of Manitoba Canada. I am an independent consultant in the US (Ohio more specifically) and have my own "web store" (www.cleanmoregreen.com). All products will be shipped from Canada, no matter where they are sold TO. Shipping is always $5.25 USD. From what I understand, Norwex charges tax based on the address where the items are shipped to (I guess some companies do it on billing address). Most of my customers will be in the USA, so they will need to pay US sales tax. However, Canadians can and may buy from me, so I need to be able to charge them the proper taxes as well. This part has already been set up for me as a GST/HST/PST tax structure. It's the US part I'm having trouble with. I am required to charge tax to all customers, regardless of where they are.

    Thanks!

  4. #4
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    Default Re: Tax problem--I have no clue!

    If you do not have an office in the United States, and are shipping from Manitoba, You do not charge tax to US Clients at all. When the product crosses the border the buyer will automatically be charged tax by customs.

    Canadian companies can not charge US taxes to US buyers unless there is a office in the US (this also means that there must be an incorporation registered there too.)


    In the case there is a US office, then what you would do is ship the item from Manitoba to the customer and bill taxes to the US office. Since there is a US office, a bill can be invoiced to the customer with US taxes from Manitoba.

    For clarification on this please contact US Customs or the IRS.


    "It's the US part I'm having trouble with. I am required to charge tax to all customers, regardless of where they are."


    Says who?

    It will be much easier for the client to pay taxes on delivery...but that is my 2 cents.
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  5. #5
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    Default Re: Tax problem--I have no clue!

    Quote Originally Posted by Qdixon View Post
    Where is this company based out of? Does this company have offices in any other Provinces or offices in the US?

    In Canada everyone pays the GST = 5% (Federal Sales Tax)

    Now in each Province there is an additional tax called the PST. Some provinces like Alberta do not have this tax and some provinces Like Quebec have HST (soon to be Ontario as well in July) HST simply put, is the collection of GST and PST in one Tax.

    Only setup taxes for places that you are required to TAX

    Senario 1:
    OK so you have a company in Canada who is located in the Province of Ontario. You should collect GST and PST for Ontario Customers and GST for all other Canadian customers. If you sell to the USA or other countries you do not collect or charge tax.

    Senario 2:
    You have a company based in Ontario and have offices in BC, Manitoba and Quebec. You will charge the GST to all sales within Canada. You will also charge PST to all the Provinces that you have an office in and HST only for Quebec.

    Senario 3:
    If the company is based in Canada and you have an office in the USA, you must also charge and remit US taxes if shipped and invoiced from US office or if Shipped from Canada, do not charge tax as it will be due at import.
    Maybe you can help me with my scenario. The online store is based out of the US, handmade products made here in the US. Orders from Canada, do I need to collect Canada tazes?

    Thanks,

  6. #6
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    Default Re: Tax problem--I have no clue!

    No, US Businesses do not charge tax to Canadian customers.

    (note: there are circumstances that would contradict this but you need to have an office in Canada and you would know about this.)
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  7. #7
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    Default Re: Tax problem--I have no clue!

    Quote Originally Posted by Qdixon View Post
    No, US Businesses do not charge tax to Canadian customers.

    (note: there are circumstances that would contradict this but you need to have an office in Canada and you would know about this.)
    Thank you for the quick response, it really help!

  8. #8
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    Default Re: Tax problem--I have no clue!

    Hello Everyone, I am new to zen card it's been 3 weeks now since i try to find some help on setting up the tax on my store i am in Quebec i follow the guide from this link http://tutorials.zen-cart.com/index.php?article=75 but i am unable to set up the TVQ well i don't know how if anyone with a knowledge of a Quebec store be so kind and help me out please

    PS. i did search all the threads but just can't find any info on this TVQ for Quebec.

 

 

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