canadian-bills

Canada: Example Tax Configuration

The following example shows how to set up GST tax rates for Canada and PST tax rates for
Saskatchewan, with tax rules that calculate and display the two tax rates. Because this is an
example configuration, be sure to verify the correct tax rates and rules for your tax
jurisdictions. When setting up taxes, set the store scope to apply the configuration to all
applicable stores and websites.

  • Fixed product tax is included for relevant goods as a product attribute.
  • In Quebec, PST is referred to as TVQ. If you need to set up a rate for Quebec, make sure to
    use TVQ as the identifier.

Process Overview:
Step 1: Complete the Tax Calculation Settings
Step 2: Set Up Canadian Goods & Services Tax (GST)
Step 3: Set Up Canadian Provincial Sales Tax (PST)
Step 4: Create a GST Tax Rule
Step 5: Create a PST Tax Rule for Saskatchewan
Step 6: Save and Test the Results

Step 1: Complete Tax Calculation Settings

1. On the Admin menu, select System > Configuration. Then in the panel on the left, under
Sales, select Tax.
2. Click to expand each section, and complete the following settings:


Step 2: Set Up Canadian Goods & Services Tax (GST)

To print the GST number on invoices and other sales documents, include it in the name of the
applicable tax rates. The GST will appear as part of the GST amount on any order summary.


Step 3: Set Up Canadian

Provincial Sales Tax (PST)

Set up another tax rate for the applicable province.

Step 4: Create a GST Tax Rule

To avoid compounding the tax and to correctly display the calculated tax as separate line
items for GST and PST, you must set different priorities for each rule, and select the “Calculate
off subtotal only” checkbox. Each tax appears as a separate line item, but the tax amounts are
not compounded.

Step 5: Create a PST Tax Rule for Saskatchewan

For this tax rule, make sure to set the priority to 0 and select the “Calculate off subtotal only”
checkbox. Each tax appears as a separate line item, but the tax amounts are not compounded.

Step 6: Save and Test the Results

1. When complete, click the Save Config button.
2. Return to your storefront, and create a sample order to test the results.

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