Sales tax calculation tips for Canadian Sellers (GST/PST/HST)

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, whilst 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:

1. Go to Admin > Edit E-junkie Cart Sales Tax & VAT Settings.
2. Under VAT Settings:
   1. Specify Canada as the country from where you will be selling your products;
   2. Check the box if you want E.U. buyers to be charged VAT.
3. Under Simple Sales Tax Settings:
   1. Enter the GST rate appropriate for your products;
   2. Checkmark the box for Tax buyer from country;
   3. Select Canada as the Country whose buyers should be charged.
4. 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:
   1. For Provinces with an HST rate, specify that percentage rate for each of those Provinces (e.g., NL,13.0);
   2. For provinces where PST is compounded on GST or vice-versa:
      1. Convert each percentage rate to a multiplier figure (e.g., 5% becomes 1.05, etc.);
      2. Multiply those figures together (e.g. 5% GST and 7.5% PST would mean 1.05 x 1.075 = 1.12875).
      3. Convert the compounded multipler back to a percentage (e.g., 1.12875 = 12.875%)
      4. Specify that final percentage rate for that Province (e.g. PQ,12.875)
5. Remember to click Submit to save new settings;
6. While adding or editing a product, check the "Tax" option if you want to charge tax according to your settings on that product.

This page added by Tyson on February 18th, 2009 @ 4:18 pm GMT -7