How to calculate canadian tax

[returnTobasic]

Hello!
I would like to know how to setup ShopSite inorder to properly calculate Canadian taxes GST/QST.
Just a quick ex.

In the province of Quebec there are 2 taxes
- price of the item is 10$
- GST tax is 5%
- on the subtotal 10$ + 5%=10.50$ we apply QST tax: 8.5%
- total price is 10.50$ + 8.5% = 11.39$

When selling to outside another povinces only GST tax is applied.

Thanks

[loren_d_c]

Do you have a recent version of ShopSite? If so, go to Commerce Setup -> Tax and select the 'Use ZIP Code to determine sales tax' radio option and click the Configure button. Down towards the bottom should be the Canadian postal code zones for each Canadian province. Check the box on the left of all of them, and % box on the right add the total percentage tax to be charged to shoppers who are shipping to that zone, i.e. the GST for all the non-Ontario provinces and the GST+QST percentage (13.925%) for Ontario. Then click the Save Changes button at the bottom.

-Loren

[returnTobasic]

Thanks for looking into it Loren.

I have ShopSite® Starter 10 sp2 r2.
In this version there's no Canadian postal code predefined. Is there in another version?
Also, I can't add both taxes together. The way it works is that first the GST is calculated and on the total of the GST+ item price, the QST is then calculated. The result is not the same. It's a value added tax.
The VAT/GST is also not an option as the VAT is a tax rate applied to individual products. The GST/QST is applied to a province.

[loren_d_c]

At the bottom of the tax by zip config screen what do you have set as the 'Number of tax zones to use''? And what is the highest it can go? If you increase it to 80, do you see the Canadian postal codes then? If not, then your ShopSite was probably upgraded to 10 sp2 from a previous version, and you will need to create the Canadian postal code zones yourself. For example, for Nova Scotia, the postal code patterns would like this:

B?????,B??????,b?????,b??????

That would cover the cases where a Nova Scotia shopper might use upper or lower-case 'B' and include or not include a space in the postal code.

As far as the GST+QST goes, I didn't just add the rates together. 5+8.5=13.5. However, if the original 5% is also being included when the 8.5% is applied, does that not make it an effective rate of 8.925%? And 5+8.925=13.925.

I'm not actually a math wiz, I got these numbers from this Wikipedia article:
http://en.wikipedia.org/wiki/Sales_taxes_in_Canada
So if the Wikipedia article is incorrect, then perhaps you should submit a correction to it to them.

-Loren

[returnTobasic]

Thanks Loren,
I'll add the Canadian postal codes. If you have a list of the patterns ready, could you please send them to me.
Also, thanks for the Wikipedia article, with that, I have a solution.

[loren_d_c]

This is what the Canadian zones look like by default in a ShopSite installed as 10 sp2 or newer:

Newfoundland and Labrador Tax: A?????,A??????,a?????,a??????

Nova Scotia Tax: B?????,B??????,b?????,b??????

Prince Edward Island Tax: C?????,C??????,c?????,c??????

New Brunswick Tax: E?????,E??????,e?????,e??????

Eastern Quebec Tax: G?????,G??????,g?????,g??????

Metropolitan Montreal Tax: H?????,H??????,h?????,h??????

Western and Northern Quebec Tax: J?????,J??????,j?????,j??????

Eastern Ontario Tax: K?????,K??????,k?????,k??????

Central Ontario Tax: L?????,L??????,l?????,l??????

Metropolitan Toronto Tax: M?????,M??????,m?????,m??????

Western Ontario Tax: N?????,N??????,n?????,n??????

Northern Ontario Tax: P?????,P??????,p?????,p??????

Manitoba Tax: R?????,R??????,r?????,r??????

Saskatchewan Tax: S?????,S??????,s?????,s??????

Alberta Tax: T?????,T??????,t?????,t??????

British Columbia Tax: V?????,V??????,v?????,v??????

Nunavut and Northwest Territories Tax : X?????,X??????,x?????,x??????

Yukon Tax: Y?????,Y??????,y?????,y??????


-Loren

[returnTobasic]

Thanks it's working.