As well, the only thing "wrong" about it that I can see is that it doesn't correctly deal with NS. Provincial taxes can change at any time, and the "correct" way of doing it is covered later in the thread anyway. So really "ecom newbie"... "take it down altogether"? Seriously? This tutorial is invaluable to all Canadian Zenners and it holds your hand 99.9% of the way. Hoping for that extra 0.1% is fine... demanding it is not.

Royal:

• Tax Class Title: GST/PST/HST Class /* HINT: Yes, this is the same one you just used
• Zone: Eastern Canada - HST Zone
• Tax Rate (%): 13.0000
• Description: 15% HST#R99999 9999 RT0001
• Priority: 1
  /*HINT: Insert your Tax Number (RST) as part of DESCRIPTION and it will show up on invoice !!!

Hello, just noticed you have the tax rate at 13% and description at 15% ... i'm guessing it should say 13% on both ... just wanted to point out in case people are copying and pasting as i was :) ... and moved forward without double checking and it shows this on their invoice ...

djbelize:

Hello, just noticed you have the tax rate at 13% and description at 15% ... i'm guessing it should say 13% on both ... just wanted to point out in case people are copying and pasting as i was :) ... and moved forward without double checking and it shows this on their invoice ...

Yes! It should be 13%.

• Tax Class Title: GST/PST/HST Class /* HINT: Yes, this is the same one you just used
• Zone: Eastern Canada - HST Zone
• Tax Rate (%): 13.0000
• Description: 13% HST#R99999 9999 RT0001
• Priority: 1
  /*HINT: Insert your Tax Number (RST) as part of DESCRIPTION and it will show up on invoice !!!

Hi:

There seems to be a lot of confusion around the original tax setup info on this post. For those of you who can't seem to get your head around it, here's a modified version as of July 1/2010. **

NOTE:** each province handles shipping taxes differently. Please check with he appropriate government agency in your province,

Thank you Dr Byte and Peter Mosier for their work on this topic.

===================
Step-by-Step SETUP:

STEP (1): Set the location for your store:

Configuration --> My Store

• Country: Canada
• Zone: BC (This is my province)

STEP (2): Create the "Tax Zones". The are geographical regions where a particular set of tax laws applies
Locations/Taxes --> Zones Definitions

• Since HST has been adopted or modified as of July 1, 2010, the following zones will be required:

Canada GST Zone (Except NB, NL, NS, ON, BC)
HST Zone - NB, NL, ON
HST Zone - BC
HST Zone - NS

Create the Zone for all of Canada

• Zone Name: Canada GST Zone
• Description: GST (Except NB, NL, NS, ON, BC)

Now click on the newly created "Canada GST Zone" row to drill down one level to "Sub Zones"
Click INSERT to create 8 new sub-zones, one at a time:

• Country: Canada; Zone: Alberta
• Country: Canada; Zone: Manitoba
• Country: Canada; Zone: Northwest Territories
• Country: Canada; Zone: Nunavut
• 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 HST Zone - NB, NL, ON:
Click Insert

• Zone Name: HST Zone - NB, NL, ON
• Description: NB, NL, ON

Now click on the newly created "HST Zone" row to drill down one level to "Sub Zones"
Click INSERT to create 3 new sub-zone:

• Country: Canada; Zone: New Brunswick
• Country: Canada; Zone: Newfoundland
• Country: Canada; Zone: Ontario

Click on "BACK" to go up one level.
Now create the HST Tax Zones for NS:
Click Insert

• Zone Name: HST Zone - NS
• Description: HST for NS

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

Click on "BACK" to go up one level.
Now create the HST Tax Zones for BC:
Click Insert

• Zone Name: HST Zone - BC
• Description: HST for BC

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: British Columbia

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 (%): 5.0000
• Description: 5.0% GST
• 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: HST Zone - NB,NL,ON
• Tax Rate (%): 13.0000
• Description: 13.0% HST (NB,NL,ON)
• 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 - NS

• Tax Rate (%): 15.0000

• Description: 15%

• Priority: 1

• Tax Class Title: GST/PST/HST Class

• Zone: HST Zone - BC

• Tax Rate (%): 12.0000

• Description: 12% 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 (%): 5.0000

• Description: 5.0% GST on shipping

• Priority: 1

• Tax Class Title: GST Shipping Class

• Zone: HST Zone - NB,NL,ON

• Tax Rate (%): 13.0000

• Description: 13.0% HST (shipping)

• Priority: 1

• Tax Class Title: GST Shipping Class

• Zone: HST Zone - NS

• Tax Rate (%): 15.0000

• Description: 15% HST shipping

• Priority: 1

• Tax Class Title: GST Shipping Class

• Zone: HST Zone - BC

• Tax Rate (%): 12.0000

• Description: 12% HST shipping #99999 9999 RT0001

• Priority: 1

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"

==============

I hope I did not forget anything.

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

Hello, i'm hoping someone could help me choose the appropriate shipping method module ... i'm residing in windsor ontario and am just looking to ship within Ontario probably toronto the furthest as of now ... to start off as most of my business is locally and as i expand i'd like to offer further shipping. Any help or direction would be great ! :)

Hi all!

Great tutorial!

Unfortunately, even after going through it over and over again, I still seem to be doing something wrong.

i have set up the BC HST zone (12%), and the BC Shipping HST zone (12%), but when I go to check-out, I am charged 24% on the TOTAL (product + shipping charges), instead of 12% on each...

what have I done wrong?

Any advice appreciated :-)

UPDATE: I solved my problem. My best-guess is that, when you have a tax zone defined that doesn't associate with any specific geographical zone, that tax is added as well by default. I made a few changes, so I am not sure, but I think that was what was wrong (I had a zone that was geographically undefined)

sculpt:

Hi all!

Great tutorial!

Unfortunately, even after going through it over and over again, I still seem to be doing something wrong.

i have set up the BC HST zone (12%), and the BC Shipping HST zone (12%), but when I go to check-out, I am charged 24% on the TOTAL (product + shipping charges), instead of 12% on each...

what have I done wrong?

Any advice appreciated :-)

Correct: A zone that's not assigned any geographical limitations is thus universal, and therefore applied to everyone.

newagekat, thanks for that updated set of instructions. It worked a treat. Well done. :)

Vito

I followed the instructions from newagekat (instructions as of July 1 2010) then did a dump of the affected dbase records. If you import what follows into your database, this should take care of steps 1-4 inclusive assuming you've done no other tax configuration yet.

NOTE: this also assumes the dbase prefix is "zen_" which is easy enough to change with a search and replace in the code below

NOTE: I haven't tested this on a new install yet so hopefully I haven't missed any relevant dbase tables.

--
-- Dumping data for table `zen_geo_zones`
--
LOCK TABLES `zen_geo_zones` WRITE;
INSERT INTO `zen_geo_zones` VALUES (2,'Canada GST Zone','GST (Except NB, NL, NS, ON, BC)',NULL,'2010-11-12 11:07:32'),(3,'Canada HST Zone - NB, NL, ON','HST (NB, NL, ON)',NULL,'2010-11-12 11:12:12'),(4,'Canada HST Zone - NS','HST (NS)',NULL,'2010-11-12 11:13:48'),(5,'Canada HST Zone - BC','HST (BC)',NULL,'2010-11-12 11:15:19');
UNLOCK TABLES;

--
-- Dumping data for table `zen_tax_class`
--
LOCK TABLES `zen_tax_class` WRITE;
INSERT INTO `zen_tax_class` VALUES (2,'GST/HST/PST Class','All taxable goods',NULL,'2010-11-12 11:16:43'),(3,'GST/HST Shipping Class','GST/HST on shipping within Canada','2011-07-22 12:00:03','2010-11-12 11:17:33');
UNLOCK TABLES;

--
-- Dumping data for table `zen_tax_rates`
--
LOCK TABLES `zen_tax_rates` WRITE;
INSERT INTO `zen_tax_rates` VALUES (2,2,2,1,'5.0000','5% GST',NULL,'2010-11-12 11:21:21'),(3,3,2,1,'13.0000','13% HST (NB,NL,ON)','2010-11-12 11:22:47','2010-11-12 11:22:33'),(4,4,2,1,'15.0000','15% HST (NS)',NULL,'2010-11-12 11:23:31'),(5,5,2,1,'12.0000','12% HST (BC)',NULL,'2010-11-12 11:24:13'),(6,2,3,1,'5.0000','5% GST Shipping','2011-07-22 11:46:06','2011-07-22 11:38:17'),(7,3,3,1,'13.0000','13% HST (NB, NL, ON)  Shipping','2011-07-22 11:46:31','2011-07-22 11:39:28'),(8,4,3,1,'15.0000','15% HST (NS)  Shipping','2011-07-22 11:46:42','2011-07-22 11:40:21'),(9,5,3,1,'12.0000','12% HST (BC)  Shipping','2011-07-22 11:46:54','2011-07-22 11:41:47');
UNLOCK TABLES;


--
-- Dumping data for table `zen_zones_to_geo_zones`
--
LOCK TABLES `zen_zones_to_geo_zones` WRITE;
INSERT INTO `zen_zones_to_geo_zones` VALUES (2,38,66,2,NULL,'2010-11-12 11:08:05'),(3,38,68,2,NULL,'2010-11-12 11:08:22'),(4,38,72,2,NULL,'2010-11-12 11:08:42'),(5,38,73,2,NULL,'2010-11-12 11:08:56'),(6,38,76,2,NULL,'2010-11-12 11:09:09'),(7,38,77,2,NULL,'2010-11-12 11:09:54'),(8,38,78,2,NULL,'2010-11-12 11:10:07'),(9,38,70,3,NULL,'2010-11-12 11:12:45'),(10,38,69,3,NULL,'2010-11-12 11:12:55'),(11,38,74,3,NULL,'2010-11-12 11:13:05'),(12,38,71,4,NULL,'2010-11-12 11:14:50'),(13,38,67,5,NULL,'2010-11-12 11:15:36');
UNLOCK TABLES;

vito:

newagekat, thanks for that updated set of instructions. It worked a treat. Well done. :)

Vito

You're Welcome, Vito. It was my very first tutorial to ZC so it pleases me to no end that it was clear and concise. Of course, if they decide to remove the HST, we'll have to revisit this tutorial.

I'm trying to build some Karma points, so if you found the post handy, add some positive energy.

Happy Zenning, everyone.

I hope this is in the right area, I apologize if it is not. A general question for us Canadians...

in a situation where your province has an HST in place, and you've configured the taxes accordingly, how do you deal with customers that you have that were previously PST exempt? Do they now get a partial exmption on the provincial portion of the HST? How do you set this up so those customers don't get charged the provincial portion of the HST (only the GST)?:blink:

it doesn't work like that... you charge them the HST just like you would have charged them GST before. To be clear... say it was BC. You previously charged them 5% GST but did not charge them the 7% PST. Now you DO charge them the full 12%HST because the WHOLE thing is a federal tax.

highlander:

I hope this is in the right area, I apologize if it is not. A general question for us Canadians...

in a situation where your province has an HST in place, and you've configured the taxes accordingly, how do you deal with customers that you have that were previously PST exempt? Do they now get a partial exmption on the provincial portion of the HST? How do you set this up so those customers don't get charged the provincial portion of the HST (only the GST)?:blink:

What a lot of retailers are doing is charging the full amount and leaving the client to file for a refund of the PST portion. You can assist them by providing a link to the form and the gov't page thAt relates to it. Have a look at http://cra.gc.ca

I don't think that's the correct way to look at it either. For (most) all intents and purposes, there is no "BC portion". Of course there could be some exceptions in some particular industries/products, but for the most part - if you're selling "stuff" like 99% of the stores out there, then there IS NO PST and no "provincial part" of the tax. The only tax is the HST. You collect the full HST from everyone.

Who would be "exempt" anyway? Are you selling to a business that previously did not pay PST? They do now pay the full HST and they get the full HST back on their return (this is actually the whole point of switching to HST). Are they of native status? Well, i don't think that applies since they have to show you their status card and I don't know how they can do that over the net... but in any case, they're exempt fully and not just from a portion. Is it children's clothing in BC or something similar to that? OK in that case I don't know. I don't know how that would work online since in retail you have to sign something. In that case, I imagine newagekat is correct and you leave it to the customer to make a claim if they have such a claim.

More details on what or you are assuming would be "exempt" would allow for more research and a better answer.

• Steven

If you haven't selected one yet, I'd recommend CANADA POST.

djbelize:

Hello, i'm hoping someone could help me choose the appropriate shipping method module ... i'm residing in windsor ontario and am just looking to ship within Ontario probably toronto the furthest as of now ... to start off as most of my business is locally and as i expand i'd like to offer further shipping. Any help or direction would be great ! :)

My bad...I meant to say GST ( but the native issue still applies now that I think about it when using online credit card processing and/or a virtual terminal). Mistakes happen when you're red-eyed and tired. :sleep1:

For instance, when selling to DND. They are GST exempt. In the past, they would tell me their exemption number and I would not have to charge the GST.

Small business with razor-thin mark-ups. Every little bit helps.

s_mack:

I don't think that's the correct way to look at it either. For (most) all intents and purposes, there is no "BC portion". Of course there could be some exceptions in some particular industries/products, but for the most part - if you're selling "stuff" like 99% of the stores out there, then there IS NO PST and no "provincial part" of the tax. The only tax is the HST. You collect the full HST from everyone.

Who would be "exempt" anyway? Are you selling to a business that previously did not pay PST? They do now pay the full HST and they get the full HST back on their return (this is actually the whole point of switching to HST). Are they of native status? Well, i don't think that applies since they have to show you their status card and I don't know how they can do that over the net... but in any case, they're exempt fully and not just from a portion. Is it children's clothing in BC or something similar to that? OK in that case I don't know. I don't know how that would work online since in retail you have to sign something. In that case, I imagine newagekat is correct and you leave it to the customer to make a claim if they have such a claim.

More details on what or you are assuming would be "exempt" would allow for more research and a better answer.

• Steven

I am gone through the postings on page 25 & 26 and I have set up my taxes in Zen Cart using the Aug 10th, 2010 posting by 'newagekat' (thanks for the updated info!). This is in preparation for registering with the federal government.

Now, I admit I really don't have a good grasp of what I have just done - and because of that I am not sure the steps I need to take to accomplish the following...

For now, I don't want to charge any taxes on the products (selling Canada-wide) but I do want to collect shipping taxes since I have to pay HST on postage here in Ontario. Would it be possible for someone to explain how I can accomplish this?

TIA
a.h.

You're going to get yourself into trouble if you start playing the "collect on some but not on others" games. If you're collecting tax then collect tax. If you're not, then don't. I can't see any way at all that you can collect just on shipping and not on your products.

IF you are operating as a business, then you collect tax for your goods and shipping and you pay tax on your inputs and shipping. How it washes out at tax time depends on if you spent more or sold more.

IF you are NOT operating as a business of any consequence (and that's OK - I think there's a $30,000 threshold where you don't have to register/collect) then you do NOT have to collect NOR remit taxes, but you still pay on everything. That's your choice as a very small business.

But its all or nothing and you can't pick and choose. If you are choosing to absorb the taxes then you must absorb all the taxes, including on your shipping costs and you can NOT collect taxes to recover that unless you register with the gov't for a tax ID. Once registered, you MUST charge and collect taxes on all applicable goods and services (your stuff plus shipping) and you MUST remit that at the end of the year/quarter/etc.

Thanks for replying, s_mack.

I have just moved from BC and when I ran my internet business there I only collected the PST from my BC customers - I did not register for the GST because I was under the threshold. I had the cart set up to collect PST from my BC addresses only. The cart has always used the Canada Post shipping module. However, I am not even sure tax was collected on the postage unless it was included in the quote from CP.

Now that I have moved to Ontario I am debating whether to wind the biz down or register and then have to collect all the taxes. In the meantime, I have removed the tax class from the products but I am being dinged the HST at the post office which is why I was wondering if it is possible to set the cart to collect the HST on shipping. It just seems lately the shipping price coming back from CP has been underestimating the actual cost and it looks like it is short on the taxes. I was only hoping to set the cart so that it was reflecting the actual cost of shipping. I suppose I could increase the "handling" costs within my biz CP profile to cover this shortfall - which might be the way to go.

Thanks for you help.
a.h.