Configuring Canadian Taxes

Learn how to configure Canadian taxes in your online store.

Seller Labs avatar
Written by Seller Labs
Updated over a week ago


  1. Ensure the Canadian Taxes add-on is installed and enabled.

  2. Ensure that each product in your store that requires a tax application has a tax class assigned to it. You can create custom tax classes or use the pre-set "Default tax class." See:

  3. Ensure that your store has all the necessary address zones configured. You will need these zones to use different provincial tax rates based on the customer's address. See:

  4. If you need different provincial tax rates for different customer membership levels, ensure that you have set up the necessary user membership levels. See:

To configure Canadian taxes, follow the steps below:

  1. Open the Canadian Taxes page

    • X-Cart 5.4.x - Store Setup > Taxes

    • X-Cart 5.5.x - Store > Taxes

  2. Configure the tax options in the Common Tax Settings section:

    • Use the same tax rates for all user membership levels: Use this field to specify whether provincial tax rates should be the same for all your store's customers, irrespective of their membership, or different depending on the membership. If the tax rates are the same for all your buyers, enable the option by selecting the respective check box. If different membership levels require different tax rates calculation, leave this check box unselected.

    • Address for Canadian taxes calculation: Use this select box to specify the address type to become the tax calculation base. The available options here are the Shipping address and Billing address. Your online store will use the address type you select here to determine the customer's zone, which defines the tax rate that needs to be applied. For example, to charge taxes based on the delivery point (but not the place of purchase), you need to set the Shipping address option in this field.

    • Taxable base: Use this selector to specify the type of costs on which tax rates calculation needs to be based. The available options here are as follows:

      • Subtotal + Shipping cost;

      • Discounted subtotal + Shipping cost;

      • Subtotal;

      • Discounted subtotal;

      • Individual settings for every rate.

        If you select Discounted subtotal + Shipping cost, your online store will calculate tax rate amounts as percentages of the product subtotal sum after applying discounts and estimating product shipping cost.

        If you need multiple tax rates calculated based on different costs, select the last option - Individual settings for every rate. Selecting this option adds a selector with the first four options from the above list for each of your tax rates, allowing you to specify a taxable base for every tax rate individually.

    • GST rate (%): Use this field to specify the GST rate you need to use.

    • Merchant GST registration number: Use this field to specify your tax identification number, which will display in the invoices for orders with GST/PST applied. If you need to change the wording of this phrase, follow the "Rename label" link below the field name to do it.

  3. Make sure you enable the Canadian taxes calculation in your store. You can control it by the "Tax enabled/Tax disabled" toggle.

  4. Click the Save changes button at the bottom of the page to save the changes.

Related pages:

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