Canada - Taxes

[gbaby]

In Canada there is country wide tax GST (currently 5%) on all items. In addition, each province has there own PST. Some provinces have combined the above taxes into one tax instead: HST.

Provincial tax ranges from 0% to 10%

*GST= Government Sales Tax
PST= Provincial Sales Tax
HST= Harmonized Sales Tax

Many goods are PST exempt including children's clothing and food.

http://en.wikipedia.org/wiki/Sales_taxes_in_Canada

[pmemedia]

Just to add to the previous post. Some province (Quebec might be the only one I'm not sure) the provincial sale tax (PST) piggy back on the Good and Services tax (GST). What it means is that you must first apply the GST to your purchase and THEN you apply the Quebec Sale Tax (QST) to the total. For example: your purchase 100$, the GST on that purchase is 5%, so 5$ you must apply the QST on 105$ (right now the QST is 7.5%) so it would be 7.5% of 105$ = 7.88$

Right now Prestashop cannot handle such scenario. The only way to solve that problem is to create a GST tax for all provinces except Quebec of 5% and then create a tax of 12.87% (Combine GST+QST) only for orders from Quebec. Not ideal because on the invoice/system, customers don't know how much of each tax they paid. Also, when they see 12.87% Tax on their invoice, they don't know what it is because they are used to see both taxes (separated) on their bills.

[probitaille]

http://en.wikipedia.org/wiki/Sales_taxes_in_Canada

In Canada there are three types of sales taxes: provincial sales taxes or PST, the federal Goods and Services Tax or GST, and the Harmonized Sales Tax or HST.

Every province except Alberta implements a provincial sales tax or the Harmonized Sales Tax. The Yukon, Northwest Territories and Nunavut do not have any type of regional sales tax. The federal GST rate is 5% effective January 1, 2008.

Taxes can always change...

[freeme]

Also it is probably important to note that currently in Prestashop 1.2.5, you have left out North American (the Continent) America is the USA, NOT CANADA. Canada is in North American, not America/US. Also Canada, like many UK colonies has Provinces, not states. It is currently a long process to set up the provinces tax in Prestashop, because first you have to figure out how to make a new Continent, North America, and then you have to figure out how to add the Provinces to North American, and then you have to delete the States (US) to make a listing that only contains Canadian provinces for the customer to select from, before doing the tax portion.

If that sounds like a complaint it isn't, I'm just not a smilies user, and not much for putting warm and fuzzy wording when describing how things are.

[Matthieu Biart]

Hi freeme!

Apologies for the mistake of placing Canada on the US continent.
We'll change that ;-)

But concerning the "provinces" once the Canada location fixed, you'll be able to add "states" easly to Canada in order to use them.
Just understand that "state" is just a word for country unit and that it works both for states, provinces, prefectures, departments...

[Matthieu Biart]

Here is an old feature request post related: Better support for dual tax system in Canada

[bernie-s]

CANADA: Harmonized Sales Tax (HST) takes effect july 1, 2010
HST will combine (harmonize!) GST + RST in each province, in to one tax item

GST is the current federal tax on all Goods AND Services
RST (Retail Sales Tax) is the provincial tax currently applied to Goods only -> not Services
HST combines GST + RST in to one tax item and is applied to ALL Goods AND Services (so through harmonization there is now effectively an added provincial tax on services that was not there before)

ONTARIO: on july 1, 2010, in the province of Ontario, the existing Ontario Retail Sales Tax (RST - 8%) will cease to apply and the HST will be applied at the combined tax rate of 13% -> the federal portion will be 5% and the provincial portion will be 8%

[Matthieu Biart]

Hi bernie-s!

Thank you for this important report.

[Bors]

As always, the Canadian taxes Wiki page, already mentioned twice in this thread, remains the easiest way to keep track of what's going on - http://en.wikipedia.org/wiki/Sales_taxes_in_Canada

July 1 is for Ontario and BC only.

Btw, thanks for adding the provinces in 1.3, even if they are still listed in the mighty US zone/continent.

[hyipbucks]

One problem I always run into is the fact that Alberta doesn't have any provincial taxes. So when a customer is from alberta, the PST needs to show as 0%.

A friend of mine, Omar Patryn, was recently having trouble with taxes when it comes to Ontario, because they use something called the Harmonized sales tax, which is a single 13% tax. It works fine in most cases, but its caused a few problems, because its a single tax, rather than the separate GST and PST.

Nevertheless, I think we've cleared things up.

[France]

Bonjour,

Translation by Patric

In Quebec and even in Canada, the reductions that are made on products are always before taxes.
In Prestashop a reduction is made before taxes if this is not a coupon. In the case of a coupon that causes problems and costs us additional $.

On the invoices nothing appears on the reduction % that was given to the customer either by promotion, sale or coupon. According to my accountant it would be litigious if a customer complains.

Regarding taxes, the subject has already been discussed on how they must be calculated in Quebec and the obligation to show distinctly the two taxes.

Comme mon anglais n'est pas très fort je vais écrire ici.

Au Québec et je dirais même au Canada, les réductions qui sont faites sur les produits sont toujours avant les taxes.
Dans Prestashop une réduction est faite avant les taxes si ce n'est pas un bon de réduction. Dans le cas d'un bon de réduction cela cause problème en plus de nous coûter des $ supplémentaire.

Sur les factures rien n'apparait sur le % de réduction qui a été donné au client soit par une promotion, solde ou bon de réduction. Selon mon comptable cela pourrait litigieux si un client se plaint.

Concernant les taxes, le sujet a déjà été abordé sur la manière d'être calculée au Québec et l'obligation d'afficher les deux taxes bien distinctement.


Si vous pouviez traduire et mettre mon message au bon endroit ce serait gentil.


Merci

[Matthieu Biart]

Hi France!

Thank you for this important detail.

[tif]

Hi,

I still don't understand how to setup Canadian taxes properly with Prestashop. Do you create one tax rate for each province since Prestashop does not allow displaying 2 taxes separately, like for Quebec...

Can Anyone help?

[isolu]

Hi,

I'm from Quebec and I have the same problem. I created a taxe for Canada and a taxe for Quebec. The problem is the taxes should be calculated after the user enter his conntry and province not before. There is something wrong with the taxes system.

Does someone has the solution ?

[macesk]

Hello!

I am new to Prestashop and am creating my first ecommerce store using Prestashop 1.4. I am setting up the taxes and have encountered the rule where Quebec and PEI's PST is calculated on the combined amount (eg: item price + GST= X; X + PST = total price). A previous poster has discussed this already for Quebec (and I noticed that PEI is the same) but I am unsure as to what I am supposed to do in Prestashop to follow this tax rule in Canada.

Here are some updated Canadian GST/PST/HST figures for 2011:

http://www.taxtips.ca/salestaxes/salestaxrates2011.htm


If anyone has any suggestions for how to correctly set the taxes for Quebec and PEI, it would be greatly appreciated!

Thanks!

[gbaby]

Happy to see Canada tax issues are solved by PS 1.4!

[npereira]

can someone tell me how to configure prestashop for Quebec taxes?
How is it setup so that the amount is taxed at 5% first, then the amount is then taxes at 8.5%

[wamou]

Hi all Canadian people !

I run with 1.4.1 the fresh new version but it seems that the tax issue is not solved...
Can someone explain me how to set correctly canadian taxes (GTS HST PST...)?
There's something I don't understand, I set the GST 5% and PST or HST on each provinces. Well I think my tax rule is correct.
Here comes the test, and it doesn't work correctly, I mean my test customer live in Montreal and in his cart, just one tax is charged (GST 5%)... I don't understand what's wrong

Could you please help me ?

[wamou]

No solution here ?

[Lartis]

Sorry gbaby, the problem is not solved in 1.4.

The second taxe should be applied on the (total + first taxe). It is not the case. Many other solution add a “tax order” variable, it the order is the same for both, they are not added. If the tax order is different, the first one is applied, and the second is apply after on the total.

I think the detail for the 2 taxes are also mandatory on the invoice. And PS doesn’t support that.

There is a workaround: using a different taxe rate to include the first one in it, but it is not a real solution.

Per exemple, for Quebec: use 5% for country taxe, and 8.925% for Quebec (instead of 8.5%, to include the tax on the 5%GST).

[ubergirl]

Hi

I'm using prestashop 1.4.3. Here are the problems we had:

 

I the province of Quebec, we are supposed to add the PST on the price + the GST. See this example:

 

sub total : 10$

GST 5% : 0.50$ (10$ x 0.05)

PST 8.5% : 0.89$ (10$ + 0.50$) x 0.085

Total: 11.39$

 

We are also required to show the taxes separately, as shown above. The problem is that on the pdf invoice, the taxes are shown as a total.

 

I also noticed that the gift wrapping option is only available as all taxes included. Since all taxes are calculated based on the destination of the parcels (i.e. different provices), we cannot include taxes in prices (it is actually illegal to do this in canada, as opposed to France).

 

We also had to work on the programming of the blockcart so it wouldn't show items taxes included. Same for the Blockpromotion, who showed only final prices with taxes.

 

But in all, I am still very happy with Prestashop! Keep up the good work!

[Ed Marchal]

Short of custom programming, when will Prestashop finally implement Canadian tax support correctly? It needs to show the taxes separately Provincial and Federal and needs to compound depending on the province.

 

Prestashop 1.4 did not solve our tax issues as it seems.(I tested version 1.4.3) Is there someone on the Prestashop team that could comment on this please?

[tank]

I thought I share what of learned trying to set up taxes for BC.

 

How to setup taxes for a business located in a Province that charges HST. (BC, Ont, Nova Scotia, New Brunswick)

IF your business is in BC where HST is 12% but you sell to Ontario you must charge Ontarios rate of 13%.

If you sell to a province that has the old GST PST system then you charge the GST rate of 5%

......

 

First go to a web site that list taxes for all the provinces to have a current reference.

http://en.wikipedia....ation_in_Canada

 

In Prestashop Admin go to Payment>Taxes

 

Referring to the Tax chart in wiki and create a tax for each tax rate since not every province has the same rate.

Name them like this and set the rate.

HST12 12%

HST13 13%

HST15 15%

GST5 5%

 

That should cover all the provinces.

 

Now go to Payment>Tax Rules

 

Create Rule

RuleBC

 

Now to edit the rule for each province

For each province select apply state tax only

For each province select tax to apply which will be one of the taxes you created earlier.

 

Now each product must have the tax rule set to RuleBC (or whatever you named it)

 

one more thing.......

Because shipping is also taxed You must also apply that rule to shipping.

Shipping>carrier> and set tax rule for each carrier UPS Fedex etc.

 

Hope this helps. (sorry not helpful for Quebec)

[redcat]

Hi, Quebec is about to change for HST so that will be resolved soon But there is one more issue with Canadian taxes, delivery in Indian reserves is tax exempted, Since I have a lot of clients there, I have tried to setup the county for those but you can only enter numbers (for US states) I change it in the database but I stil cannot add the letter number combination for the postal codes in the BO, I tried to enter them in the database directly but if I put apply county rules in tax rules it puts no tax for all Quebec not just the postal codes associated with the county. Do you see a way to make that work ?

[evileddy]

Does anyone have a common solution for breaking out taxes in Canada between GST and PST?  I'm struggling with this one and wonder if I have to start digging into blockcart like ubergirl did, or if there is more of an out of the box solution - i'm using 1.5.6.2

[tuk66]

I deal with it and the M4 PDF Extensions module has:

 

- Expanded price_breakdown data, more information about compound taxes (for USA, Canada and other countries)
- New template "Invoices - compound taxes", showing the individual taxes

 

since version 2.0.4.

 

http://www.presta-addons.com/pdf/Invoice - Quebec taxes.pdf

http://www.presta-addons.com/pdf/Canada Tax Rules.jpg