Configuring Taxes for Canadian Sites/Zones

[johnenns]

I figured it out, I had my configuration set to base tax on store location instead of shipping address.

[milosm]

[QUOTE=DrByte;198824]You might find this helpful ... it needs a bit of touching-up, but the basic core is there:
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This tax calculation makes no sense.

When you add a product price (let's say $100), and select TAX CLASS: NONE, the gross price become $117..or whatever, and if select a tax class the gross becomes $133..or whatever... I see no logic...?????????????????????????????????????

Logically, the price for a product displayed (in a box) should be $100, and when a client add it to cart, register, and check out it should displayed $100 + taxes depending on where she/he lives + shipping charges, and then a sub-total.

Maybe I'm mistaken, but how to modify Shipping module in order t odsiplay all these broken down ?

[MikeG1969]

This is REALLY helpful for Canadian Vendors (It might have to be updated in 2010 when BC and Ontario start doing HST). I just had a meeting with the Ontario Ministry of Revenue, and found out I need to indicate the taxes, or specify it is included.

I have products where I need to include taxes in the price, based on competitive pricing. I have set up the taxes as procedure above to reflect taxes being collected, but would like to do ONE the following, making the net price the same, even if taxes are charged:

• make a zone based pricing policy, with discounts for taxed regions.
• offer discount coupons by zone to reflect the taxes added (easy but can it be automatic?)
• add instant rebate to certain items by zone.

Are any of these items possible?

[s_mack]

Yes, all possible. I don't think any are easy in terms of doing it by manipulating settings. You would have to customize the code. Its not a bad idea for a contribution actually. For my store I have no competition practically but I still hardly sell ANY product in my own province. There's really no reason for that other than taxes. I myself, when shopping online, try to stay away from businesses in my own province because I don't want to pay the extra 7% for no reason. Which is why provincial/state taxes suck - but that's an entirely different discussion.

One problem you're going to run into is that your site doesn't know where a customer is from until they log in. So you'll basically have to advertise somewhere that you pay the taxes for local orders. Then you need to modify the code such that a discount is automatically applied for those in the tax zone. That should be easy enough. Don't do it as a coupon or another problem you're going to run into then is that customers with other coupons won't be able to use them because the "tax free" coupon was automatically applied (zen won't currently allow more than one coupon). Instead, I think you'd probably want to modify the "specials" code to allow a special to only apply for a given zone. Actually, that's not a bad idea for a core upgrade to the code.

Really though, I think you could just charge a zero tax rate and put a notice up that "taxes, where applicable, are included in the price shown." and ignore what OMoR told you. What are they going to do? Nothing. Just make sure you handle the actual accounting side correctly and submit the appropriate tax you "collected" and they'll be happy as clams. I've learned in business, and especially as it relates to government, to just keep it simple and don't ask them questions you don't want to know the answer to.

[captainmorgan]

This thread is quite helpful, but I still need some help.
I'm in Alberta, I realize I charge HST only for those provinces that have HST. What about for the provinces that have PST, to hav have to set up tax zones for each province to apply GST and which provices are cumulative?
It seems as though whever there is an example, it's always in Ontario. Can someone tell me what to set up for Alberta.
thanks

[s_mack]

Just follow the examples, substituting Alberta and its taxes wherever you see Ontario. Yes you charge HST for any province that collects it - currently only Atlantic provinces, but starting sometime next year it will be ON and (probably) BC. There is nothing cumulative. You don't worry about anyone's PST but your own, which in your case doesn't exist.

[canuckclint]

Wow can't believe nobody found this one out.

In the zones_to_geo_zones table in my zen cart there is two associations for
Ontario , hence you see GST + GST.

I got rid of the duplicate by running this sql query in phpmyadmin:
delete zones_to_geo_zones where association_id = 6;

Clinton Gomes, CEO
MBA, BSc Comp Sci.
www.clintsys.com

[Khepara]

Were you able to resolve this tax miscalculation problem on the shipping charges?

Interesting... I replaced the original ot_tax.php with yours and noticed my SHIPPING GST and PST display 50% of their actual values. The grand total does display correct. I restored the backup of ot_tax.php and the shipping values appear fine.

With original ot_tax.php:

Sub-Total: $155.99
Shipping: $10.48
GST#99999 99999 RT0001 5.0% GST + 8.0% PST: $20.28
5.0% GST on Shipping + 8.0% PST on Shipping: $1.36
Total: $188.11

With modified ot_tax.php:

Sub-Total: $155.99
Shipping: $10.48
GST#99999 99999 RT0001 5.0% GST: $7.80
8.0% PST: $12.48
5.0% GST on Shipping: $0.26 (Should be $.52)
8.0% PST on Shipping: $0.42 (Should be $.84)
Total: $188.11 (Remains correct)

Any thoughts would be appreciated.

[Veronika7747]

With July 1st changes, is this part of tax class obsolete?

- 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

I assume we should create two HST tax zones (BC @ 12%) and the other (ON, NS, NL, NB @13%) and same for 2 HST shipping zones, right??

[newagekat]

Hello:

has anyone performed the necessary steps to adjust for ON and BC HST? and their varying rates (12% BC, and 13% ON)

I need to make the changes on live sites and cannot afford any errors. If someone has adjustment steps required, please please share.