In the process of configuring Canadian taxes, you will need to complete the configuration of your tax rates.
The Canadian taxes add-on comes with the predefined provincial tax rates. The number of fields to configure depends on the common tax settings.
The “User membership” column becomes available when the option “Use the same tax rates for all user membership levels” is disabled in the common tax settings.
The “Taxable base” column becomes available when the option Individual settings for every rate is selected in the “Taxable base” field of common tax settings.
If necessary, use the New rate button to add rows for more tax rates.
Complete the fields in each row as you require:
- Province: Specify the province in which the tax rate should be applied. The tax rate will be applied to orders of customers whose address belongs to the selected province. Whether it is their Billing or Shipping address depends on the option selected in the “Address for Canadian taxes calculation” field of common tax settings.
- Tax class: Specify the type of products (tax class) to which the tax rate should be applied. For example, if you select the Default tax class option here, the tax rate will be applied to all the products that have the default tax class assigned.
- User membership: Specify the user membership level for which the tax rate should be applied. The option Ignore membership allows you to create a tax rate that will be applied to all orders irrespective of the buyer’s membership.
- Taxable base: Specify the type of costs based on which your tax rates should be calculated.
- Rate: Specify the tax rate amount as a percentage of the selected taxable base.
Please note that your settings are not saved until you choose to save them with the Save changes button. After completing your tax rates setup, be sure to complete your tax setup enabling the tax for your store as described in the section Configuring Canadian Taxes.