Configuring Taxes for Canadian Sites/Zones

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

[QUOTE=DrByte;198824]You might find this helpful ... it needs a bit of touching-up, but the basic core is there:

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 ?:unsure:

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?

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.

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

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.

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.
https://www.clintsys.com

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

MojoDaddy:

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.

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??

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.

If you're doing business with the maritime provinces, you can simply apply the HST you would have set up there to the new provinces that are using HST.

Ray

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.

It should be fairly straight forward. I'm in BC so I'll use myself as an example.

First Step: Locations / Taxes --> Zone Definitions
Currently I have BC PST Zone [PST (only when shipping to BC)], Canada GST Zone [GST (except Eastern Canada: NS, NB, NL)], and Eastern Canada HST Zone [HST (only when shipping to NS, NB, NL)]

That will chaneg to BC HST Zone [HST (only when shipping to BC)], Canada GST Zone [GST (except BC, NS, NB, NL, ON)], and Eastern Canada HST Zone [HST (only when shipping to NS, NB, NL, ON)]

Second Step: Locations / Taxes --> Tax Rates
For each Tax Class (Shipping and Taxable Goods) there are the three zones (listed above) associated. Adjust the new BC zone frmo 7% to 12%.

The rest stays the same.

Am I missing anything?

• Steven

I do wonder though... should we be adjusting existing tax definitions? Or should we be adding new ones and stop using the old ones? The reason would be (I guess) for historical paper trail.

Hello:

For those of us still confused about assigning tax rates etc. here's a blow by blow on how to adjust your existing settings.

My clients are in BC so BC PST is used. Please adjust for your province.

Locations/Taxes --> Tax Rates
Delete
GST/HST/PST Class Zone: BC PST
GST on Shipping Zone: BC PST

Locations/Taxes --> Zones Definitions
choose Canada GST Zone, click details
Delete BC and ON
Click BACK to go up one level.

choose PST Zone, click details
delete BC
Click BACK to go up one level.
delete PST Zone

Choose HST Zone, click details
Click INSERT to create new sub-zone:

• Country: Canada; Zone: Ontario
  Click BACK to go up one level.

Create the HST Zone for BC

• Zone Name: BC HST Zone
• HST (only when shipping to BC)

Now choose on the newly created "BC HST Zone", click details
Click INSERT to create a new sub-zones:

• Country: Canada; Zone: BC

Locations/Taxes --> Tax Rates
create TWO Tax Rates:

• Tax Class Title: GST/PST/HST Class

• Zone: BC HST Zone

• Tax Rate (%): 12.0000

• Description: 12.0% GST#99999 99999 RT0001

• Priority: 1

• Tax Class Title: GST Shipping Class

• Zone: BC HST Zone

• Tax Rate (%): 12.0000

• Description: 12.0% GST on shipping

• Priority: 1

I don't think that completed order are changed, so any paper trail should still exist. I hope I've covered everything. If I've missed anything, do let me know.

is this correct for Ontario starting July 1st??

3 Tax Zones:
Canada GST Zone GST (Except NB, NL, NS -- ON, BC
HST Zone - Eastern Canada & ON NB, NL, NS, ON - ONLY
HST Zone for BC BC - ONLY

2 tax classes

GST on shipping/handling
GST/HST/PST Class

6 Tax rates
GST/HST/PST Class Canada GST Zone 5.00% 5.0% GST#99999 99999 RT0001
GST/HST/PST Class HST Zone - Eastern Canada & ON 13.00% 13% HST#R99999 9999 RT0001
GST/HST/PST Class HST Zone for BC 12.00% 12% HST#R99999 9999 RT0001
GST on shipping/handling Canada GST Zone 5.00% 5.0% shipping GST/HST#99999 9999 RT0001
GST on shipping/handling HST Zone - Eastern Canada & ON 13.00% 13% shipping GST/HST#99999 9999 RT0001
GST on shipping/handling HST Zone for BC 12.00% 12% shipping GST/HST#99999 9999 RT0001

Tx
Veronika

Hi Veronika,

The only change I can see that you missed is Nova Scotia's HST rate changes to 15% on July 1, so I guess you would need another zone and another tax rate for each of your classes.

Colleen

MsHutch:

Hi Veronika,

The only change I can see that you missed is Nova Scotia's HST rate changes to 15% on July 1, so I guess you would need another zone and another tax rate for each of your classes.

Colleen

Thanks, I did not know that one...

Soooo, the above will become

3 Tax Zones:
Canada GST Zone GST (Except NB, NL, NS, ON, BC)
HST Zone - NB, NL, ON
HST Zone - BC
HST Zone - NS

2 Tax Classes
GST on shipping/handling
GST/HST/PST Class

8 Tax rates
GST/HST/PST Class/Canada GST Zone/5.00%
GST/HST/PST Class/HST Zone - NB,NL, ON/13.00% GST/HST/PST Class/HST Zone - BC /12.00%
GST/HST/PST Class/HST Zone - NS /15%

GST on shipping/Canada GST Zone/5.00%
GST on shipping/HST Zone - NB,NL,ON/13.00%
GST on shipping/HST Zone - BC/12.00%
GST on shipping/HST Zone - NS / 15%

Is that right?

Oops, 4 Tax Zones that is.

Hope this setting is right...

Hi
This is old and doesn’t include changes to Ontario and BC. There is no more GST and PST for these provinces and they go to HST from July 1. Does any one know what need to be changed in this document to reflect changes to Ontario and BC?