At least some Provinces of Canada have defined a Provincial Sales Tax (PST) that is compounded with the Federal Goods and Services Tax (GST), rather than simply adding the rates together, while other Provinces only charge a Harmonized Sales Tax (HST) that inherently combines GST with PST, whilst still others charge no PST at all . You can configure this properly in E-junkie; just a bit of simple math is required to obtain the proper compounded overall tax rate for each Province:
- Go to Seller Admin > Edit E-junkie Cart Sales Tax & VAT Settings;
- Under VAT Settings:
- Specify Canada as the country from where you will be selling your products;
- Check the box if you want E.U. buyers to be charged VAT.
- Under Simple Sales Tax Settings:
- Checkmark the box for Tax buyer from country;
- Select Canada as the Country whose buyers should be charged;
- Enter the GST rate appropriate for your products.
- Under Advanced Tax Settings, specify an overall tax rate for each province that will override the GST-only tax rate, following the example format on that screen:
- For Provinces with an HST rate, specify that percentage rate for each of those Provinces (e.g., NL,13.0);
- For provinces where PST is compounded on GST or vice-versa:
- Convert each percentage rate to a multiplier figure (e.g., 5% becomes 1.05, etc.);
- Multiply those figures together (e.g. 5% GST and 7.5% PST would mean 1.05 x 1.075 = 1.12875).
- Convert the compounded multipler back to a percentage (e.g., 1.12875 = 12.875%)
- Specify that final percentage rate for that Province (e.g. QC,12.875)
- Remember to click Submit to save new settings;
- While adding or editing a product, check the Sales Tax/VAT option if you want to charge tax according to your settings on that product;
- You must use the standard E-junkie Cart button codes in order to use our cart's tax calculation feature.
