That's a good question. I'm not sure what is the right answer to your question. I'll do some research and get back to you if I bump into an good answer. You should email the people at iPage as they probably could answer your iPage question..
If I am a seller located in Ontario I will charge 6% GST and 7% PST..
If a buyer from Alberta makes a purchase through my store - I don't charge them for the products based on ___where they live____.
They get charged the rates of the regional area from where they are buying - which is always Ontario of course..
Do you have a product that you sell that allows you to charge each customer a different percentage of sales tax ? .
If so - how on earth do you sort all this out on your tax forms in Arpril ??????.
I checked my configuration and and in Categories/Products, "Tax Class" was specified as GST, which has the rate of 6%. It makes situation little bit better, at lease GST can be collected. But, I could not find way to use different Tax Class, such as HST for NoveScotia, or noTax for overseas, PST for Ontario where the store located. Is there any way to relate the shipping address with Tax Zone/Class/Rate?.
Thank you for any hint...
You are charging Ontario PST to someone ordering from Alberta? Why is that? Do you also charge GST and PST to someone from another country who orders from you? Or do you only ship within Canada?..
Hi I have been doing some research on this as well for 2 BC clients and this is what I have found and you should probably be aware of..
Online Sales: Which Taxes Do You Collect for Each Province?.
In sum, as an online retailer accepting and shipping orders across Canada, the list of taxes you should be collecting and remitting currently looks like this:.
BC GST & PST.
Manitoba GST & PST.
New Brunswick HST.
Nova Scotia HST.
Newfoundland & Labrador HST.
Prince Edward Island GST.
Northwest Territories GST.
Taken from this article:.
You can also voluntarily collect certain taxes for your customers which you can read about in the article mentioned..
Another interesting article is:.
Which comments on how you can sell non tangible products (software, downloads etc.) without having to charge GST to international customers..
Please correct me if I what I found is wrong..
Also, wouldn't it be nice if someone did a contribution that would do this for us poor Canadians ;P or maybe just lazy in my case..
Well - this is certainlty very interesting - and not something any of my e-commerce clients do. They all charge GST + PST based on the sale being in Ontario..
So - we need a contrib to assign the tax values based on Province ? .
This should not be a problem..
Here's the list :.
Hopefully I can plug into a web services module and the values will be updated without having to do it manually..
I'll look into it - I just wrote my three big clients to ask them if they knew about this..
I've heard back from one already, and she says this :.
If it is MADE in Ontario and SHIPPED to an.
There is both taxes..
If it is MADE in Ontario and SHIPPED to.
Another province or country.
There is GST only..
Doesn't matter where the purchaser lives, Hong Kong etc. It is.
Where it is made.
Where it is going.
Thoughts ? .
This post has been edited by.
: 22 February 2007, 13:37..
Hmm, the second article I listed states:.
In Canada exported goods are classified as a zero rated sale so no GST needs to be collected if your product is being shipped outside of Canada. But you still get the benefit of the input tax credits which is the GST you paid for business purposes..
I read somewhere else this is to encourage exporting? Also of note there is supposedly a VAT tax if you ship to a European country that you are supposed to collect for them..
I'll have to do more digging myself. But so far i'm believing what I have read..
It can all be very complicated, perhaps someone who knows for sure can clear this up. Perhaps someone with a lawyer friend ;P..
Hmm tried to edit my post to add this but it didn't seem to take....
I should also mention that the only time one would charge GST to an international customer is when they are selling a non tangible product, a download like an ebook or music etc. And even then there is a work around that you state that the customer cannot bring that product in any form into Canada...
Also keep in mind if your client's company isn't pulling in $30,000 or more a year they don't even have to claim GST unless they went and got a GST number anyways. But you always have to charge customers for the PST HST for those provinces, I believe..
God I can't edit my posts for some reason... well here is post 4!..
Man - my eyes completely gloss over in about 3 seconds trying to read the articles you are referecing! lol. Not my gig I'm afraid..
Well - all I can do is take the word of my clients - as I'm in no position to be deciphering the law. Nor should I be since I am not the seller..
However - I did ask my client if she was interested in separating these values within the shopping cart..
She asked "well, is it possible?" - Of course I said *anything* is possible, but is the time going to be worth the benefit for her case - likely not, but only becuase she processes the transactions from a manual terminal in her office after she has recieved the order. We have disclaimers on the checkout that says.
Total costs are approximate and will verify with you before completing the order.
She likes to verify shipping costs, etc..
ANYWAY - this still sounds like a good hole to fill within OSC and I'll be looking into it..
Well just to dig this up one more time....
There is an Oscommerce contribution which is simply a "how to" text document. (Tax rates are outdated).
If you follow the instructions you will find that you indeed have to charge each province based on their taxes..
To quote the example:.
Shipping to Ontario:.
Per Item (Best Way): $10.00.
8.0% PST (Ontario) + 7.0% GST #99999 9999 RT0001: $10.35.
7.0% GST (shipping) + 8.0% PST (shipping): $ 1.50.
Shipping into the HST zone (NB, NS, or NL):.
Per Item (Best Way): $10.00.
15% HST#R86179 1655 RT0001: $10.35.
15% shipping HST#99999 9999 RT0001: $ 1.50.
Shipping to Canada, but non-HST, and non-Ontario:.
Per Item (Best Way): $10.00.
7.0% GST # 99999 9999 RT0001: $ 4.83.
7.0% GST (shipping): $ 0.70.
Shipping to non-Canada zone:.
Per Item (Best Way): $10.00.
So if your client ends up behind bars and uses her 1 phone call to call you, you can tell her why she is in there.
Of course this information could have changed recently by some chance, but I haven't seen any mention otherwise...
Ok - thanks for the info Todd - I go over with my client..
Thanks - david..
I got this straight from Revenue Canada. I'm in BC. Using your quote as an example, if you are located in Ontario, you should not be charging Provincial Sales Tax for orders going out of the province. That applies to any province. In my conversation with them I said, "well, I just got a new (name) computer system from Ontario, and was charged BC Provincial Sales Tax as well as GST. Why?" Their reply was that this company maintains an office in BC, so the BC Sales Tax applies..
So unless you have offices in other provinces, you should only be charging GST on out-of-province sales and of course no tax at all on items shipped out of the country..
Always best to check with your accountant or with Revenue Canada or your Provincial Sales Tax people to whom you remit, on questions like this!.
Do you see this quoted on the revenue canada web iPage site anywhere ? .
Can you ask him about the HST provinces? I think that because their GST is combined we have to charge them the 14% HST..
So if you are in BC and you customer is from Newfoundland what tax do you charge him?.
According to the contribution you would charge them HST...
It is something called the "Place of Supply" Rule. This CCRA bulletin is dated 1997 but it is still in force, from the CCRA website:.
If you are in a non-harmonized province, shipping to a harmonized province, you only charge the GST, not the entire HST..
If you are in a harmonized province, shipping to a non-harmonized province, you only charge GST..
If you are in a harmonized province shipping to another harmonized province, you only charge GST..
If you are shipping within your own province, you charge the taxes applicable to your own province..
Basically what it boils down to is, everyone in Canada gets charged GST, and the customers in your own province get charged the taxes applicable to your own province..
But, if you have offices (actual physical locations) in other provinces, the goods are deemed to have been supplied by the company's office in that province and so both taxes would apply..
If you are shipping out of the country, you do not charge taxes. If you are charging GST on exports, you will be on very shaky ground if you are ever audited. It is only visitors who come to Canada and buy things here that can claim a refund on GST..
Hope that helps..
Thanks for all the helpful information! I am also trying to setup OScommerce here in Canada and have been spending weeks trying to figure out how to setup the TAX ZONE, CLASSES, AND RATES! Is there anyone out there who can post a step-by-step proceedure on how to do this for us CANADIANS!.