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Canadian tax zones


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Posted

Hi,

 

I need help making changes to which provinces are included in a specific tax zone. For example, Ontario used to be a Canada GST zone but now it is in HST tax zone. Can someone help me make the changes so that an Ontario customer automatically gets charged the HST tax.

 

Thanks,

Ed :x

Posted

Can someone help me make the changes so that an Ontario customer automatically gets charged the HST tax.

 

Does this thread contain interesting information relating to your question?

Posted

Ed,

 

Unfortunately, us Canadians are in a real bind now. With some products having HST and some having GST and some having BOTH HST AND GST on the same invoice, I am struggling to find a workable solution to the tax issue. I will update you if I find one.

 

 

Chris

Posted

I have to agree. We are really struggling with the HST. We can charge it correctly to customers, but when it comes to accounting for it, it really is a nightmare. For instance, someone buys $10 @ 13% HST, $10 @ 8% HST, $10 @ 5%, and $10 @ 0% HST. Shipping is $10. The HST on the shipping is actually the weighted average of the above, or 6.5%. My accounting program can't calculate this so I have to do it manually and then I can't input it in shipping, so I have to separate out the applicable shipping at each tax rate (that's 4 line items). There really isn't any way around it. On top of that, how do we account for the HST on PayPal Fees? Every order gets a different tax rate again. We pay $100's in PayPal fees and there isn't any way to know the effective rate of HST since it could be anywhere between 0 and 15%. Absolutely ridiculous. To top it all off, none of our suppliers have invoiced us correctly for the HST, so entering Purchase Orders is a nightmare.

 

Anyone found any better solutions?

Posted

Brian,

 

The added twist to it is, we also have to collect GST from other provinces and HST (15%) from 3 provinces, even if they are not OUR province.

 

 

Rev Can really screwed retailers this time.

 

 

 

Chris

Posted

Brian,

 

The added twist to it is, we also have to collect GST from other provinces and HST (15%) from 3 provinces, even if they are not OUR province.

 

 

Rev Can really screwed retailers this time.

 

 

 

Chris

 

Chris as far as I know the only Province we need to collect an HST at the rate of 15% is for Nova Scotia. If you're referring to Newfoundland and New Brunswich they are still at the old HST rate at 13%. They didn't change to 15% on July 1st like Nova Scotia did...dan

Posted

I have to agree. We are really struggling with the HST. We can charge it correctly to customers, but when it comes to accounting for it, it really is a nightmare. For instance, someone buys $10 @ 13% HST, $10 @ 8% HST, $10 @ 5%, and $10 @ 0% HST. Shipping is $10. The HST on the shipping is actually the weighted average of the above, or 6.5%. My accounting program can't calculate this so I have to do it manually and then I can't input it in shipping, so I have to separate out the applicable shipping at each tax rate (that's 4 line items). There really isn't any way around it. On top of that, how do we account for the HST on PayPal Fees? Every order gets a different tax rate again. We pay $100's in PayPal fees and there isn't any way to know the effective rate of HST since it could be anywhere between 0 and 15%. Absolutely ridiculous. To top it all off, none of our suppliers have invoiced us correctly for the HST, so entering Purchase Orders is a nightmare.

 

Anyone found any better solutions?

 

That's an interesting comment about Paypal Brian. I don't think PayPal charges us any tax on fees. Where are you seeing that?

 

Dan

Posted

That's an interesting comment about Paypal Brian. I don't think PayPal charges us any tax on fees. Where are you seeing that?

 

Dan

 

Hi Dan,

 

Upon further reflection, PayPal is a financial service and is exempt from HST. The PST and HST do increase the PayPal fee cost to the bottom line by the rate of the sales tax, because you have to pay the fee on the tax collected and you don't get that back.

Posted

I maintain a site for a bookseller in Ontario. My understanding, from what I've read, is that the 13% HST needs to be applied to all shipping in Canada (given) - not just Ontario. Any other Ontario stores have an answer? Books are PST exempt.

Posted

Michael,

 

In your case, GST of 5% would still be valid on the purchase for Ontario Residents and then the following table for shipping as it is now calculated on the destination, not the point of origin.

 

 

Shipping Tax Chart

 

Alberta (GST) 5%

British Columbia (IST) 12%

Manitoba (GST) 5%

New Brunswick (HST) 13%

Newfoundland and Labrador (HST) 13%

Northwest Territories (GST) 5%

Nova Scotia (LST) 15%

Nanavut (GST) 5%

Ontario (HST) 13%

Prince Edward Island (GST) 5%

Quebec (GST) 5%

Saskatchewan (GST) 5%

Yukon Territories (GST) 5%

 

 

Chris

Posted

Michael,

 

In your case, GST of 5% would still be valid on the purchase for Ontario Residents and then the following table for shipping as it is now calculated on the destination, not the point of origin.

 

 

Shipping Tax Chart

 

Alberta (GST) 5%

British Columbia (IST) 12%

Manitoba (GST) 5%

New Brunswick (HST) 13%

Newfoundland and Labrador (HST) 13%

Northwest Territories (GST) 5%

Nova Scotia (LST) 15%

Nanavut (GST) 5%

Ontario (HST) 13%

Prince Edward Island (GST) 5%

Quebec (GST) 5%

Saskatchewan (GST) 5%

Yukon Territories (GST) 5%

 

 

Chris

 

 

Should be 8% in Ontario, 0% in most other provinces if the order is only books (except where there is a provincial portion of HST on books. Prorated if there are other items on the order.

Posted

Brian,

 

There is NO LONGER a PST. All goods and services will now either have the HST or just the GST depending on the product. However, SHIPPING throughout Canada, regardless of the product follows this Shipping Table:

 

 

Shipping Tax Chart

 

Alberta (GST) 5%

British Columbia (IST) 12%

Manitoba (GST) 5%

New Brunswick (HST) 13%

Newfoundland and Labrador (HST) 13%

Northwest Territories (GST) 5%

Nova Scotia (LST) 15%

Nanavut (GST) 5%

Ontario (HST) 13%

Prince Edward Island (GST) 5%

Quebec (GST) 5%

Saskatchewan (GST) 5%

Yukon Territories (GST) 5%

 

 

 

 

Chris

Posted

Brian,

 

There is NO LONGER a PST. All goods and services will now either have the HST or just the GST depending on the product. However, SHIPPING throughout Canada, regardless of the product follows this Shipping Table:

 

 

 

 

 

Chris

 

Hi Chris,

 

You can call Revenue Canada and ask to speak with a GST Rulings officer to confirm if you don't believe me, but the shipping takes on the same rate as the products. The reason is that if you include shipping in the the price, the HST takes on the same rate as the products, so if the shipping were taxed at the full HST rate, you would need to adjust the tax on the shipping included in the price. Shipping companies will charge you the full tax rate, but that is an ITC and you just collect the pro-rated amount from the customer.

 

Best of luck!

 

Brian.

Posted

Brian,

 

I have spoken to revenue canada and my accountant AND verified the information by contacting UPS and Purolator.

 

 

There is no such thing as PST and there is no PRO RATED shipping fee based on the item purchased.

 

 

 

Chris

Posted

Brian,

 

I have spoken to revenue canada and my accountant AND verified the information by contacting UPS and Purolator.

 

 

There is no such thing as PST and there is no PRO RATED shipping fee based on the item purchased.

 

 

 

Chris

Hi Chris,

 

8% HST only applies to a few things, I hadn't checked the list, and I agree that it is not relevant to our discussion. It only applies to Home & Auto Insurance, Used Cars and some food items (a dozen donuts for instance) in Ontario. I have spoken with three GST/HST rulings officers and they all told me that the HST is pro rated with POS rebates. If you call the front line workers, they will give you the wrong information, you need to speak with a rulings officer. UPS and Purolator will not pro-rate the HST for you, they are simply treated as ITCs. Maybe your business is different than mine because I sell children's clothing, not books.

 

Brian.

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