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Ontario Canada shop and HST


dewed

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Posted

I need to know the necessary steps to remove all current tax zones, rates etc and set up a shop based in Ontario, where HST is applied on shipping within Ontario 13% and orders shipped to Canadian provinces other than Ontario are taxed at 5%

 

Currently I'm getting by, by applying a 5% and a 8% to Ontario orders, but would prefer it show up as one item for HST on the invoice.

 

Any help would certainly be welcome. :blink:

Just call me Dewed ...

Posted

Go to Locations / Taxs, click on Tax Rates, remove 5% and 8% tax rates,

 

For 13% tax rates for Ontario,

Step 1, go to Tax Zones, and add a new tax zone named Ontario, then click on the folder icon of this zone, then insert a new zone record by select both canada and Ontario.

Step 2, go to Tax Rates, and insert a new tax rate, select Ontario as the zone, and input 13% as your tax rate

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  • 3 weeks later...
Posted

Any advice on how to configure taxes where you have a combination of books (only subject to 5% tax Canada wide) and DVDs (subject to GST/PST/HST depending on the province/territory). Further complicated by the taxing of Shipping and Handling charges (13% HST to ON/NF/NB, 12% HST to BC, 15% HST to NS, and 5% GST to everywhere else).

 

I get bogged down and confused when it comes to tax zones and can't seem to avoid doubling up the taxes.

 

Arg!

Posted
Go to Locations / Taxs, click on Tax Rates, remove 5% and 8% tax rates,

 

For 13% tax rates for Ontario,

Step 1, go to Tax Zones, and add a new tax zone named Ontario, then click on the folder icon of this zone, then insert a new zone record by select both canada and Ontario.

Step 2, go to Tax Rates, and insert a new tax rate, select Ontario as the zone, and input 13% as your tax rate

 

this is incorrect, the 5% GST must remain for items that are not subject to HST, but only GST. GST will also be applied to shipping to some provinces as well.

 

 

There are currently 3-4 posts about the Canadian Tax Changes, please refer to the other posts as there is too much duplicate content.

 

 

Chris

Posted

Chris,

Unfortunately the other threads don't answer my question. I sell books which are exempt from from the provincial portion of the HST. Is there an up to date thread, perhaps a contribution, that can allow me to navigate multiple tax rules for I product?

Posted

Chris,

Unfortunately the other threads don't answer my question. I sell books which are exempt from from the provincial portion of the HST. Is there an up to date thread, perhaps a contribution, that can allow me to navigate multiple tax rules for I product?

Unfortunately, I don't have an answer to your problem. I wrote my own checkout page but it doesn't store the information correctly. Not only that, but I have some bad news on your understanding of the HST on shipping, it's more complicated than you think. HST on shipping takes on the same rate as the overall order. I've explained this elsewhere, but essentially if someone orders 3 $10 items, one at 5%, one at 8%, one at 13%, the tax on shipping will be 8.66%. Not only that, but none of our vendors are charging us HST correctly so our accounting is many times more complicated than it was a month ago. In my opinion, there are two options: 1) hide your head in the sand, 2) shut down your business.

Posted

Brian,

 

You should check with Rev Can again. Shipping is taxed based on the destination Province NOT on what was purchased. If you would like a good example and proof of that......check out ups.ca, purolotor.ca , dhl.ca, fedex.ca.....they all have the same taxes posted for the destinations........it doesn't matter what you ship.

 

 

 

Chris

Posted

Brian,

 

You should check with Rev Can again. Shipping is taxed based on the destination Province NOT on what was purchased. If you would like a good example and proof of that......check out ups.ca, purolotor.ca , dhl.ca, fedex.ca.....they all have the same taxes posted for the destinations........it doesn't matter what you ship.

 

 

 

Chris

Chris, you are correct, HST on shipping is charged on province of destination. But the actual tax rate charged is the weighted average of the HST on the order, which are also charged on the province of destination. So if someone buys a DVD and Book each costing $10 in Alberta, the book is 0% tax and the DVD is 5% tax, so the tax on the shipping is 2.5%. Someone buying the same item in Ontario would be charged 10.5% HST on shipping (8% and 13% averaged). Nova Scotia, Ontario and BC all have 4 different tax rates now depending on whether items are point of sale rebated, zero rated, or both. There are very few companies who are charging HST correctly, for instance, our local UPS store charges everyone shipping within Canada 13% regardless of destination because they can't get their cash register to calculate the tax correctly otherwise.

  • 4 weeks later...
Posted

Just a follow-up post, Chapters.ca is a great site to check out to see how they have handled HST on shipping. DVD are taxed at 13% and books at 5% and they prorate the tax on shipping. We have handled this by modifying one of the quickbooks downloads to split prorated shipping into two lines, one with GST and one with HST which we have to adjust manually on every order in quickbooks. We also hacked the checkout page to correctly calculate HST on shipping. It was a lot of work and I would post our solution but our site is so heavily modified that I don't think it would be useful.

 

Has anyone come up with a better solution?

 

Thanks!

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