Canadian HST at Different Rate

[crozon]

Re: Canadian HST at Different Rate

Hi,

Found another issue. The HST seems to be calculating only the tax on shipping and not any RUSH fees or Misc Fees in the checkout like we had before. It also does not remove the tax when a customer uses a coupon.

[Rick Wilson]

Re: Canadian HST at Different Rate

Christine,

Is there a doc or anything we can review to formally understand the rules in Canada?

[crozon]

Re: Canadian HST at Different Rate

Hi Rick,

Is there a doc or anything we can review to formally understand the rules in Canada?

Ha Ha...I wish. We just had a PST audit and from what I understood from the audit:

"Sales tax is charged on the total of the selling price"

Shipping, Misc service charges, Rush fees and Set -up charges should be added to the total of the order THEN charged tax.

Now, this could be different for another customer because of their shipping location (and possibly what they are selling) but I have each of these "charges" set-up to charge tax in Miva currently.

For example: in Miva I have "charge tax" checked beside the "Set-up charge" in the "Miscellaneous Fee" module by emporium plus.

We also have a coupon module (again from emporium plus) and we have "adjust sales tax" selected but when a customer uses a coupon it does not adjust the sales tax.

So I have my systems set up to charge tax but since the wombat update Miva is ignoring the requests.

[Rick Wilson]

Re: Canadian HST at Different Rate

Reminds me of PCI....

We'll check into it.

[crozon]

Re: Canadian HST at Different Rate

Off the top of my head the modules we are using that have the "sales tax rules" are

Addendum - charges the rush fee
Miscellaneous Fee - charges set-up charges and large item shipping charges
Coupon redemption - used for coupons and gift certificates

All modules are by emporium plus

[Bluej]

Re: Canadian HST at Different Rate

Christine,

Is there a doc or anything we can review to formally understand the rules in Canada?

Hi Rick,

You may visit this page for details:

http://www.cra-arc.gc.ca/tx/bsnss/tp.../menu-eng.html

Thanks

Blue J
Fabove.ca

[razertip]

Re: Canadian HST at Different Rate

The HST, GST and PST is working great!

But I have one question:

How do you handle items that are exempt from the PST portion of HST, e.g. Books?

[crozon]

Re: Canadian HST at Different Rate

Hi Rick,

Any news on the taxes not being calculated on the misc fees in the basket?

[David Roquemore]

Re: Canadian HST at Different Rate

Hi Rick,

Any news on the taxes not being calculated on the misc fees in the basket?

We will review all of the information in this thread, and determine what changes we need to make. I can't give you any firm commitment on timing at this point, but once we have more information it will be posted to this thread.

Thank you.

[David Roquemore]

Re: Canadian HST at Different Rate

The HST, GST and PST is working great!

But I have one question:

How do you handle items that are exempt from the PST portion of HST, e.g. Books?

For provinces taxed under GST and PST, we understand that PST usually has different zero rated or exempt product groups than GST. Using your example, books are generally exempt from PST.

It appears to us that HST does not have a separate PST component, which handles exempt or zero rate product groups differently than the GST component.

http://www.cra-arc.gc.ca/tx/bsnss/tp.../menu-eng.html

Can you provides us with information that documents the exemption rules concerning HST as still dealing with GST and PST having separate components and different exemption rules?

Are there transitional rules for provinces that implemented HST in July?

[razertip]

Re: Canadian HST at Different Rate

Can you provides us with information that documents the exemption rules concerning HST as still dealing with GST and PST having separate components and different exemption rules?

http://www.hstincanada.com/2010/01/h...tish-columbia/

http://news.ontario.ca/rev/en/2009/1...tario-hst.html

Most of the HST provinces have the same PST exemptions, but it doesn't really matter as long as we can check a box in the [Canadian Vat] screen under [Edit Product]. The way it is now, we have "GST Exempt" and "PST Exempt" check boxes. We need an additional "Exempt PST portion Of HST" check box.

I guess the code would be: Instead of HST just charge GST. The GST is already in the main Canadian Vat Table.

This would cover most items likely to be sold online, Books, Children's clothing and Children's shoes etc.

Are there transitional rules for provinces that implemented HST in July?

Yes, there was but I think that was to handle goods sold before July 1st and delivered after June 30th. I think that we don't need to worry about that now.

[David Roquemore]

Re: Canadian HST at Different Rate

Hi Rick,

Any news on the taxes not being calculated on the misc fees in the basket?

We have created a bug for this problem, and it will be corrected in an upcoming release. Thank you.

[David Roquemore]

Re: Canadian HST at Different Rate

http://www.hstincanada.com/2010/01/h...tish-columbia/

http://news.ontario.ca/rev/en/2009/1...tario-hst.html

Most of the HST provinces have the same PST exemptions, but it doesn't really matter as long as we can check a box in the [Canadian Vat] screen under [Edit Product]. The way it is now, we have "GST Exempt" and "PST Exempt" check boxes. We need an additional "Exempt PST portion Of HST" check box.

I guess the code would be: Instead of HST just charge GST. The GST is already in the main Canadian Vat Table.

This would cover most items likely to be sold online, Books, Children's clothing and Children's shoes etc.

Yes, there was but I think that was to handle goods sold before July 1st and delivered after June 30th. I think that we don't need to worry about that now.

Thank you for the additional information. I've been researching Canadian tax regulations and we have a much better understanding of the rules.

I've created a bug for this issue, but we cannot give you an ETA for release of the change at this time.

(I think you are on the right track with using the old GST/PST settings as a work around for PST Rebate products in HST provinces for now.)

Thank you.

[Rich]

Re: Canadian HST at Different Rate

In the Canadian VAT in Admin, it still is using PST. As far as I understand now, PST doesn't exist anymore, only HST and GST.

So why is PST still a selection when it should be GST?

If I select the "Tax GST" checkbox, will that make it read out on the invoice as GST and not PST?

[David Roquemore]

Re: Canadian HST at Different Rate

In the Canadian VAT in Admin, it still is using PST. As far as I understand now, PST doesn't exist anymore, only HST and GST.

So why is PST still a selection when it should be GST?

If I select the "Tax GST" checkbox, will that make it read out on the invoice as GST and not PST?

If you using on a fully updated 5.5 store, then you have the ability to configure GST, HST, and PST based on your understanding of the tax rates for each province.

We researched this issue in July as part of correcting a bug. There are 4 provinces we believe still charge GST and PST; Manitoba, Prince Edward Island, Quebec, and Saskatchewan. (I encourage you to seek professional tax advice regarding Canadian VAT. We are not tax professionals.)

On a side note, for stores that sell items which are eligible for a "rebate" of the PST portion of HST tax, you would need to use a GST/PST configuration in order to set the PST portion of an item as non-taxable.

Hope this information sheds some light for you on this issue.

P.S. If you have GST and PST configured for a province, these will be displayed as separate line items on the order with the appropriate labels.