NOTE: Rates adjusted to reflect changes in tax rates as of April 1, 2013
Setting up an online store is a lot of work and if you’re a Canadian shop the most frustrating part will likely be to get the taxes charging correctly.
You need to charge GST to some Provinces, HST to others, with PEI and NS having a different HST%. If you are in a Province that charges PST you’ll also have to charge PST within your Province.
Here’s a great infographic of Canadian Taxes by Province
Here I’ll walk you through the correct setup for an osCommerce store based in Ontario. If you are using WooCommerce to run your shop you’ll want to grab the CSV file on How to set Canadian Taxes for a WordPress WooCommerce website.
In the shop administration area go to -> Locations/Taxes. Check that the Countries and Zones have already been populated. Also, confirm that there is a Tax Class called Taxable Goods. Currency needs to be set to CAD.
In Tax Zones (note it’s different from just Zones) click Insert and create the following four Tax Zones.
- Canada GST
- Canada HST
- PEI HST
- NS HST
1. Click on the file folder for GST and add the following Canadian Provinces:
- British Columbia
- Yukon Territory
- Northwest Territories
2. Click on the file folder for Canada HST and add the following Provinces
- New Brunswick
- Newfoundland & Labrador
3. Click on the file folder for PEI HST and add Prince Edward Island.
4. Click on the file folder for NS HST and add Nova Scotia
Canadian Tax Rates
In Tax Rates click New Tax Rate to add these four rates to the tax class Taxable Goods
- Canada GST Zone 5%
- Canada HST Zone 13%
- NS HST 15%
- PEI HST 14%
Whew! Remember these instructions assume that your eCommerce store is based in Ontario. If you are a Quebec retailer you’ll have to charge Provincial sales tax (PST) on sales within your Province. Refer to the infographic above to adjust for your own Province.
Only charge PST for your own Province
- BC 7%
- SK 5%
- MB 8% – changed July 2013 (image below is incorrect)
- QC 9.975%