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Peter Mosier

Canada Tax Zones, Tax Class, & Tax Rates Setup notes

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Hello everyone,

 

I have just posted a summary of my *NOTES* regarding setting up a store in Ontario, Canada:

 

http://www.oscommerce.com/community/contributions,1124

 

This is not PHP CODE, but rather just my notes and discoveries as I distilled the long trail of hints, together with recent MS-1 code changes, with respect to setting up TAX ZONES, TAX RATES, and TAX CLASSES.

 

It includes a complete STEP-BY-STEP record of how to set it up. In the end it looks pretty obvious, but I wish I had this type of "road map" days ago. So, rather than "curse the darkness", I have decided to attempt to "light a candle". Just my humble contribution to the wonderful world of Open Source. :D


Email: peter AT mosierman DOT com

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Forget to mention these, but for the record:

 

See EXTRAS/TAXES/TAX_ZONES_README.HTML in your OSC download package,

 

and also http://wiki.oscommerce.com/proposalTaxes for more helpful hints setting up Tax Zones, Tax Classes, and Tax Rates.

 

Once I found those two gems, my setup came together quickly.


Email: peter AT mosierman DOT com

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I have tried to download your notes and I keep getting file not found...

 

TY

Theo


Share your knowlege and you learn even more !

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Hi peter (and others)

I am still having issues with tax it doesn't seem to be calculating or displaying properly i have followed your instructions to a tee i am just wondering if there is left over stuff from my previous configuration.

My shop is in ontario (same setup as yours)

 

here is when i am getting

 

Sub-Total: $48.57USD

7.0% GST# + Description: 8.0% PST (Ontario): $7.29USD

Per Item (Best Way): $13.16USD

Total: $70.99USD

 

it does not seem to being adding tax on the shipping at all (shipping address is in ontario)

 

tested shipping to nova scotia

 

Sub-Total: $48.57USD

Description: 15% HST#: $7.29USD

Per Item (Best Way): $13.16USD

Total: $70.99USD

 

 

also not adding tax to shipping

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I'm not sure what happened to my zip file. Sorry for the confusion, folks. Here is the file, for posterity:

 

========================================

 

Peter Mosier

peter AT mosierman DOT com

http://www.mosierman.com

 

OSCommerce version 2.2-MS1

 

My store is located in Ontario, canada. Here we have to juggle Provincial Retail Sales Tax (RST a.k.a. PST), Federal Goods and Services Tax (GST), and Fed/Prov Harmonised Sales Tax (HST).

 

I found there was much conflicting & confusing information regarding setting up TAXES with

osCommerce. Sometimes the instructions would refer to "Tax Rate" when in reality they meant

to say "Tax Zone", for example. This made setting up taxes much more complicated than necessary.

 

After spending almost two days muddling through it, I have it now working correctly at my new store.

Below is a step-by-step record what I did. If it helps you, great!

 

==============

GENERAL NOTES:

==============

Biggest Hint & Best Kept Secret:

 

For a good general overview of Sales Tax with OSC, see the file:

 

extrastaxestax_zones_readme.html

 

...which came with your download of OSC.

 

A "TAX RATE" is determined by combining or associating the appropriate TAX ZONE *AND* TAX CLASS.

 

Stated another way: TAX RATE is a function of TAX ZONE and TAX CLASS.

 

osCommerce uses SHIPPING ADDRESS to determine appropriate taxes, i.e. which TAX ZONE you are shipping into. NOTE: this is the shipping address, *NOT* the billing address.

 

A TAX RATE is determined by comparing SHIPPING ADDRESS to the Tax ZONE set up for the TAX RATE;

and also by Tax Class assigned to each product.

 

You can only assign ONE TAX CLASS to a product. For our store, we will only have one TAX CLASS (GST/HST/PST) since all goods are either taxable or non-taxable. When would you use different rates? One example would be if, say, CLOTHES were taxed at a different rate than BOOKS which are in turn different from DVDs. You could create a different TAX CLASS for each family ("class") of product in that case. But we won't have to.

 

You want (perhaps) the GST for SHIPPING to show up seperately, so we will make a seperate "TAX CLASS" for "GST on Shipping".

 

=========

PROBLEMS:

=========

 

THe method below shows the GST and PST totalled together on the same line (see sample output at EOF).

The "Canadian Seperate Tax Hack" (c.v. http://www.oscommerce.com/community/contri...ons,289/page,3)

does *NOT* seem to function with OSC v2.2-MS1 release.

(There was a change to the Tax Calculation modules for MS1). I have not yet tried the other Contrib to solve this problem

(Canadian Tax Display, http://www.oscommerce.com/community/contri...ons,546/page,3) since I suspect it may suffer from the same problem (i.e. not working with MS-1 release); although this is just a hunch.

 

Having said that, the only problem is that the two taxes are summed together. However, the GST number is display, and the percentages (rates) use are display, and nothing is hidden, so I believe that this will be acceptable according to Federal & Provincial Gov't requirements.

 

*******************************************************

Best part is: IT DOESN'T REQUIRE ANY CONTRIBUTIONS!!!!!

Just a careful setup of the zones.

*******************************************************

 

===================

Step-by-Step SETUP:

===================

 

STEP (1): Set the location for your store:

 

Configuration --> My Store

 

- Country: Canada

- Zone: Ontario

 

========================================================

 

STEP (2): Create the "Tax Zones". The are geographical regions where a particular set of tax laws applies

 

Locations/Taxes --> Tax Zones

 

Create the Zone for all of Canada

- Zone Name: Canada GST Zone

- Description: GST (most of Canada except NS, NB, NL)

 

Now click on the newly created "Canada GST Zone" row to drill down one level to "Sub Zones"

Click INSERT to create 10 new sub-zones, one at a time:

 

- Country: Canada; Zone: Alberta

- Country: Canada; Zone: British Columbia

- Country: Canada; Zone: Manitoba

- Country: Canada; Zone: Northwest Territories

- Country: Canada; Zone: Nunavut

- Country: Canada; Zone: Ontario

- Country: Canada; Zone: Prince Edward Island

- Country: Canada; Zone: Quebec

- Country: Canada; Zone: Saskatchewan

- Country: Canada; Zone: Yukon Territory

 

 

==============

 

Click on "BACK" to go up one level.

Now create the Ontario Provincial Tax Zone:

Click Insert

 

- Zone Name: Ontario PST Zone

- Description: PST (only when shipping to Ontario)

 

Now click on the newly created "Ontario PST Zone" row to drill down one level to "Sub Zones"

Click INSERT to create new sub-zone:

 

- Country: Canada

- Zone: Ontario

 

==============

 

Click on "BACK" to go up one level.

Now create the HST Tax Zone:

Click Insert

 

- Zone Name: HST Zone

- Description: NS, NB, NL

 

Now click on the newly created "HST Zone" row to drill down one level to "Sub Zones"

Click INSERT to create new sub-zone:

 

- Country: Canada; Zone: Nova Scotia

- Country: Canada; Zone: New Brunswick

- Country: Canada; Zone: Newfoundland

 

==============

 

Do NOT create a seperate Tax zone for Shipping. You will simply use the "Canada" tax zone for the GST Shipping tax class (below).

 

*** Important: this means that SHIPPING GST will only be charged to destinations within Canada,

*** but NOT charged on exports.

*** According to Canada Customs & Revenue Agency (1-800-959-5525), you do *NOT* charge GST

*** on the shipping fee for EXPORTS.

 

========================================================

 

STEP (3): Create the "Tax Classes"

 

Note: You can only assign ONE

Tax Class to a product. But since we want shipping gst to

show up seperately, we will make a seperate Tax Class just for it.

 

Locations/Taxes --> Tax Classes

 

create TWO (2) tax zones:

 

- Tax Class Title: GST/HST/PST Class

- Description: All taxable goods

 

- Tax Class Title: GST Shipping class

- Description: GST on shipping within Canada

 

========================================================

 

STEP (4): TAX RATES

 

Here is where it all comes together: Tax Rates.

Tax Rates associate Tax Zones & Tax Class to determine

the correct Tax Rate.

 

HINT: The "DESCRIPTION" is what shows up on the invoice

so use it judiciously!!!!!!!!!!!!!

 

Locations/Taxes --> Tax Rates

 

create SIX (6) Tax Rates:

 

- Tax Class Title: GST/PST/HST Class

- Zone: Canada GST Zone

- Tax Rate (%): 7.0000

- Description: 7.0% GST#99999 99999 RT0001

- Priority: 1

 

/*HINT: Insert your GST# as part of DESCRIPTION and it will show up on invoice !!!

/*HINT: Leave PRIORITY at "1" for a non-cumulative tax (i.e. Ontario)

 

- Tax Class Title: GST/PST/HST Class /* HINT: Yes, this is the same one you just used

- Zone: Ontario PST Zone

- Tax Rate (%): 8.0000

- Description: 8.0% PST (Ontario)

- Priority: 1

 

/*HINT: Leave PRIORITY at "1" for a non-cumulative tax (i.e. Ontario)

but change to "2" for cumulative tax (i.e. You are a Quebec store)

 

- Tax Class Title: GST/PST/HST Class /* HINT: Yes, this is the same one you just used

- Zone: HST Zone

- Tax Rate (%): 15.0000

- Description: 15% HST#R99999 9999 RT0001

- Priority: 1

 

That takes care of taxes on products. And now, the Shipping taxes:

 

- Tax Class Title: GST Shipping Class

- Zone: Canada GST Zone

- Tax Rate (%): 7.0000

- Description: 7.0% GST on shipping

- Priority: 1

 

- Tax Class Title: GST Shipping Class

- Zone: Ontario PST Zone

- Tax Rate (%): 8.0000

- Description: 8.0% PST (shipping)

- Priority: 1

 

- Tax Class Title: GST Shipping Class

- Zone: HST Zone

- Tax Rate (%): 15.0000

- Description: 15% shipping HST#99999 9999 RT0001

- Priority: 1

 

/* HINT: The above will calculate PST on shipping. Although there might

/* be a tendenancy to think of shipping as a PST exempt service, in fact

/* the Ontario Ministry of Finance says that for cacluating the PST,

/* "The total selling price includes delivery, mailing, transportation, or

/* handling charges, but does not include the GST". With the above set-up,

/* the PST for the shipping gets calculated (albeit seperately). If you wanted them

/* calculated together, you could assign "GST/PST/HST Class" as the

/* Tax Class when setting up the shipping method. Personally, I prefer

/* to break it out seperately.

 

========================================================

 

STEP (5): Specify the appropriate Tax Class for SHIPPING MODULES

 

MODULES --> SHIPPING

 

Edit whichever shipping module(s) you are using.

 

Tax Class: GST Shipping Class

 

/* SEE PREVIOUS HINT

 

========================================================

 

STEP (6): Specify the appropriate Tax for PRODUCTS

 

This may take some time.... ;)

 

CATALOG --> Categories/Products

 

Drill down to each product. Click EDIT

 

TAX CLASS: "GST/PST/HST CLASS"

 

========================================================

 

===============

Example Output:

===============

 

Shipping to Ontario:

 

Sub-Total: $69.00

Per Item (Best Way): $10.00

8.0% PST (Ontario) + 7.0% GST #86179 1655 RT0001: $10.35

7.0% GST (shipping) + 8.0% PST (shipping): $ 1.50

Total: $90.85

 

 

Shipping into the HST zone (NB, NS, or NL):

 

Sub-Total: $69.00

Per Item (Best Way): $10.00

15% HST#R86179 1655 RT0001: $10.35

15% shipping HST#86179 1655 RT0001: $ 1.50

Total: $90.85

 

Shipping to Canada, but non-HST, and non-Ontario:

Sub-Total: $69.00

Per Item (Best Way): $10.00

7.0% GST # 86179 1655 RT0001: $ 4.83

7.0% GST (shipping): $ 0.70

Total: $84.53

 

Shipping to non-Canada zone:

Sub-Total: $69.00

Per Item (Best Way): $10.00

Total: $79.00


Email: peter AT mosierman DOT com

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Thanks Peter for your wonderful help file. It helped sooooo much.

 

But... I as well am having troubles with the shipping tax. It is just not being displayed at all. You said in step 5:

STEP (5): Specify the appropriate Tax Class for SHIPPING MODULES

 

MODULES --> SHIPPING

 

Edit whichever shipping module(s) you are using.

 

Tax Class: GST Shipping Class

But when editing the settings for my shipping modules, I don't have any place to choose a Tax Class. Could you maybe email me the code of one of your shipping modules that has this configuration available? I will add it to my shipping modules.

 

Or... if anyone knows of another way to apply a shipping Class to shipping modules, I'd love to know.

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you need to adjust the sort order in the admin

 

modules>order total

 

Sort Order

Shipping 3

Sub-Total 1

Tax 4

Total 6

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But when editing the settings for my shipping modules, I don't have any place to choose a Tax Class. Could you maybe email me the code of one of your shipping modules that has this configuration available? I will add it to my shipping modules.

 

what version of cvs are you using this was a feature that has been added to all shippiing modules

 

you might have an old shipping module

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Thanks for the reply Kevin.

 

I am using customized shipping modules derived from the Regions contribution, which in turn was derived from the Zones module. It is indeed too old to have any Tax Zone configuration in it, but I have now added that in (I just grabbed the current snapshot's zones.php module and there were only 3 lines to change).

 

So, the problem is solved. Thanks.

 

If anyone else is using the regions contribution as a shipping module, I'd gladly explain what changes to make.

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Okay... now I'm having more problems with the shipping tax.

 

I get shipping tax displayed - that problem is fixed, but once a customer confirms the order, the shipping tax is not added into the order_totals table. Thus, it does not show up in the invoice, etc.

 

Does anyone know where order totals are inserted into the database upon confirmation of payment? I probably have some old code there that doesn't take into account tax classes for shipping modules.

 

Thanks.

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Hi,

 

I have followed the instruction and created all the zones, classes and tax rates.

 

I have couple of problems the most important one is that now visitors in Canada and anonimouse vistors see the price with tax included !!! and at the check out osc calculates tax on the top again ! But users out side Canada see the real price with no tax and everything is ok for them.

 

Any idea?


------------------

Amir

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Hi I added all the tax zones, classes,rtes etc but the problem seems to be that the new gross price thingy with (MS2.2) calculates all the taxes onto the price for example I have a product that is 39.99 and it calculates it at 51.7871 that is 29%

It is adding the GST/HST/PST Class Canada GST Zone 7.00%, GST/HST/PST Class Quebec TVQ Zone 7.50% and GST/HST/PST Class HST Zone

15.00%. I set the producttax class as GST/HST/PST Class. Any ideas how to fix this or am I missing something?

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Yam Yam, I had that problem as well and found this post..

 

I kept on searching when I was about to give up. As soon as I posted my question I found the answer:)  

 

I found a post that told me to edit the application_top.php file in the catalog/includes dir and change the display prices with tax line to read false instead of ture and wha- la BINGO,.. problem gone:)  

 

I just love this stuff,.. drives you crazy and then makes you smile:)  

 

Thanks OS Commerce:)

_________________

Thanks,  

 

Mike & Joyce  

www.joy-bay.com

 

hope that helps..


Give a man a fish and he will eat for a day.. teach a man to fish and he will collect UI for 6 months of the year!

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Still having a problem with showing the tax. I set up the zones but when I get to the confirm order page, I see the following:

Sub-Total: $7.20

Flat Rate (Best Way): $10.00

Tax: $1.08

Total: $18.28

 

Is there no way to show the gst tax line and the pst tax line (or this one was hst for example)

I added the descriptions in the tax rates section.. but I still only see one line for tax.. any suggestions?


Give a man a fish and he will eat for a day.. teach a man to fish and he will collect UI for 6 months of the year!

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Hi,

I used the Canadian Tax setup from Peter Mosier, however I am sure GST must be displayed separately from PST, eg, on a separate line, thus:

 

 

Shipping to Ontario:

 

Sub-Total: $20.00

Per Item (Best Way): $10.00

7.0% GST #86179 1655 RT0001: $1.40

8.0% PST (Ontario): $1.60

Total: $23.00

 

Is there any way I can have the invoice page, order page etc...have it this way?

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From Peter's notes:

Having said that, the only problem is that the two taxes are summed together. However, the GST number is display, and the percentages (rates) use are display, and nothing is hidden, so I believe that this will be acceptable according to Federal & Provincial Gov't requirements

 

I spoke to a GST guy today, summing the tax is perfectly legal, however, for my own preference, I would like to see GST separately from the PST. Would I simply use the separate tax hack? Peter mentioned it didn't work in MS1, I am using a snapshot from August 2003, what chance do I have :?

 

Can anyone provide a solution; to display my GST separately from the PST?

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From Peter's notes:

Having said that, the only problem is that the two taxes are summed together. However, the GST number is display, and the percentages (rates) use are display, and nothing is hidden, so I believe that this will be acceptable according to Federal & Provincial Gov't requirements

 

I spoke to a GST guy today, summing the tax is perfectly legal, however, for my own preference, I would like to see GST separately from the PST. Would I simply use the separate tax hack? Peter mentioned it didn't work in MS1, I am using a snapshot from August 2003, what chance do I have :?

 

Can anyone provide a solution; to display my GST separately from the PST?

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I have been searching through loads of posts. I think a lot of the information given in posts is old, or doesn't apply to MS2-2.2. Here is my output, using Peter's notes AND the canadian tax hack 1-4:

 

Sub-Total: $257.99

GST ( 7% ): $18.06

PST ( 8% ): $20.64

Tax (7.0% GST#87931 9200 RT + 8.0% PST (Ontario)%): $38.70

Flat Rate (Best Way): $10.00

Total: $346.89

 

It is adding tax twice. How can I keep the GST/PST lines, but stop it adding the tax again?

 

Please help, I am so close to completing my store.

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I have found a solution. I should not have used Peter's setup when using the other contribrution; I should have used the separate tax hack, then defined a shipping tax rate, similar to peters way.

 

It seems to work, though it doesn't look the best :wink:

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Peter,

thank you so much for your contribution, I was beginning to go a little nust with this. I'll try it first thing tomorrow morning. Keep u posted

 

thanks again

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Thank you both Peter and Kevin.

 

It works!! I was having problems with the shipping taxes too but sorting properly fixed it.

 

thank you so much. Wonderful.... I'm almost ready to launch my store

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After follwoing your steps

 

Now my princess won't show anywhere.

 

All my products show $0 for the price.

 

I tried re-entering some products and no luck.

 

Can anyone help?

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