Canada

 

Question: How do I configure sales taxes in Quebec, Canada?

In Quebec we have federal 5% GST, as well as the provincial rate which is nominally 7.5% and is applied on top. So, PST = 7.5% * (GST + Sale Price + Shipping Cost - Discount) and GST = 5% * (Sale Price + Shipping Cost - Discount). How do I configure these taxes?

Answer:
1. To define tax rates, go to Store Settings >> Location/Taxes/Localization >> Taxes.

2. In the Tax Names section, create a GST and a PST.

3. Don’t make any changes in Tax Display Options.

4. In the Tax Rules on Shipping Costs section, define the tax rule for shipping. Exclude those shipping methods for which delivery services are not taxed.

5. In the Tax Rates. Product Tax Class – Taxable section, first define the GST tax for Canada, then define the PST tax as shown on the picture:

6. Finally, your page should look similar to this:

IMPORTANT! This explanation is only an example, and tax values and rates may change over time. To determine the exact tax rates and tax formulas in your case, please consult your accountant.


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