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Set Up OSC for Canadian Tax
[SUOFCT]

Set Up OSC for Canadian Tax
Well one of the "Dark Arts" is setting up tax rates. It is not that difficult you just need to know your tax laws and how OSC works.

I found this for Ontario, but it should get you well on your way:

** THE CONTENTS OF THIS FILE ARE RELEASED UNDER THE GPL ***

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 (of course this could change with updates, so
don't take my word for it).

(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) used are display, and nothing is hidden, so I believe that this will be acceptable according to Federal & Provincial Gov't requirements (but I AM NOT AN ACCOUNTANT!!!!).

*******************************************************
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 classes:

- 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 #99999 9999 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#99999 9999 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 # 99999 9999 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



Thanks to peter AT mosierman DOT com for the above.
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