Jump to content
  • 0
Jamie Penner

Canadian Sales Tax

Question

I've been trying a demo and have been looking at the Tax Rules but it looks like the software isn't compliant with Canadian Sales Tax rules.  Has anyone found a way to do this, or is there plans to expand the taxes rules to multiple taxes?

Here's the explanation of how it works.

Different provinces (and territories) in Canada have different rules.      There is GST (the federal sales tax that every province has), PST (which each province can set their own rate and rules for and, in one province, there is no PST), and HST (which in some provinces is a combined PST and GST (Harmonized Sales Tax) that is collected by the federal government on behalf of the province).    

In British Columbia, where I am located, some products are subject to PST and GST, and some are PST exempt and you only charge GST.     If you are selling to another province, you collect either the GST or HST, whichever is applicable there.  So, as an example of a sale in BC, if I sell hosting and domain registration, the hosting gets charged 5% GST and 7% PST, and the domain is only charged the 5% GST.    In some cases, the client can also be GST and/or PST exempt under different circumstances.   

The criteria for exemption could be the type of product (i.e.: hosting is a communication product so is taxable with both taxes, but the domain is not so it is exempt from 1 of the taxes), if a product is for resale, etc..   The exemption rules are insane!

We are required to breakdown the amount of tax on an invoice as separate lines items, for example:

INVOICE SUB TOTAL:  $100.00
GST (5%): $5.00
PST (7%): $7.00
TOTAL PAYABLE: $112.00

More information on this mayhem can be found at https://en.wikipedia.org/wiki/Sales_taxes_in_Canada

 

 

Thanks in advance!

 

  • Like 1

Share this post


Link to post
Share on other sites

1 answer to this question

Recommended Posts

  • 0
On 12/10/2020 at 7:24 AM, Jamie Penner said:

I've been trying a demo and have been looking at the Tax Rules but it looks like the software isn't compliant with Canadian Sales Tax rules.  Has anyone found a way to do this, or is there plans to expand the taxes rules to multiple taxes?

Here's the explanation of how it works.

Different provinces (and territories) in Canada have different rules.      There is GST (the federal sales tax that every province has), PST (which each province can set their own rate and rules for and, in one province, there is no PST), and HST (which in some provinces is a combined PST and GST (Harmonized Sales Tax) that is collected by the federal government on behalf of the province).    

In British Columbia, where I am located, some products are subject to PST and GST, and some are PST exempt and you only charge GST.     If you are selling to another province, you collect either the GST or HST, whichever is applicable there.  So, as an example of a sale in BC, if I sell hosting and domain registration, the hosting gets charged 5% GST and 7% PST, and the domain is only charged the 5% GST.    In some cases, the client can also be GST and/or PST exempt under different circumstances.   

The criteria for exemption could be the type of product (i.e.: hosting is a communication product so is taxable with both taxes, but the domain is not so it is exempt from 1 of the taxes), if a product is for resale, etc..   The exemption rules are insane!

We are required to breakdown the amount of tax on an invoice as separate lines items, for example:

INVOICE SUB TOTAL:  $100.00
GST (5%): $5.00
PST (7%): $7.00
TOTAL PAYABLE: $112.00

More information on this mayhem can be found at https://en.wikipedia.org/wiki/Sales_taxes_in_Canada

 

 

Thanks in advance!

 

Hello @Jamie Penner

I will inform our developer team about all this and we will think about what we can do.

Thank you for your interest.


Regards
WISECP

We invite you to our "DISCORD" channel;
Discord.gg/pW3U3uW
 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...