August 24, 2010

Magento Ecommerce Setting Up HST

Filed under: Ecommerce — webtechbc @ 3:19 pm

I recently learned how to set up HST and Sales Taxes for Canada in Magento Ecommercer Platform.

Lets start with BC because thats the Province I live in.
Enter your magento administration panel.

Go to … Sales … Tax … Manage Tax Zones and Rates … Click on … Ad New Tax Rate.

For British Columbia the HST is GST &PST which is 12%

HST Set Up Magento

HST Set Up Magento

Next you will set up the GST for Alberta…

GST for Alberta in Magento Ecommerce

GST for Alberta in Magento Ecommerce

MB or Manitoba is 5 percent, NU or Nunavut is 5 percent, As well as Ontario, Prince Edward Island, Quebec, Saskatchewan, And the Yukon.

New Brunswick, Newfoundland and Nova Scotia all have individual HST Rates that would have individual tax codes looking like this… You should name your rates in a manner that makes sense. E.G. CA-NS-*-HST

HST 13 Percent

HST 13 Percent

Once you’ve made an appropriate tax rate for each province its time to set up the Tax Rules. Under the Admin Panel Tax Tab … Manage Tax Rules … Add New Tax Rule …

Magento Retail Tax Rules

Magento Retail Tax Rules

This tax rule will be for … Retail Customer-Taxable Goods-Rate 1 …

Select … Retail Customers …Taxable Goods … And in this case All Tax Rates
Priority and sort order are up to you, but you can use 1 in this case.
Save the Rule.

Because Shipping is taxable by HST you also want to set up a rule for shipping. for the provinces that have the combined HST. E.G. Nova Scotia, Newfoundland and New Brunswick.

HST Shipping Rule

HST Shipping Rule

For Quebec the HST is Calculated by adding GST + HST. Create a new taxable goods rule like above, and set the priority for 2. That way it ads the Quebec HST and GST together to get the HST for Quebec.

This is a complicated subject. If after reading this you are still confused you can see how its done on this youtube video.

Here is a breakdown list that I found in the Magento Forum of HST by Province.

* BC – GST & PST
* Alberta – GST
* Saskatchewan – GST & PST voluntarily (unless is home province)
* Manitoba – GST & PST
* Ontario – GST & RST if have a “business presence” (unless is home province)
* Quebec – QST
* New Brunswick – HST
* Nova Scotia – HST
* Newfoundland & Labrador – HST
* Prince Edward Island – GST & PST voluntarily (unless is home province)
* Northwest Territories – GST
* Nunavut – GST
* Yukon – GST

 

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