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 predefined provincial tax rates. The number of fields to configure depends on the Common Tax Settings.
The "User membership" column becomes available when the "Use the same tax rates for all user membership levels" option is disabled in the Common Tax Settings.
The "Taxable base" column becomes available if you select the "Individual settings for every rate" value for the "Taxable base" field of the Common Tax Settings.
You can change the predefined values for almost every column in the tax rates setup.
Use the New rate button to add rows for more tax rates if necessary.
Complete the fields in each row as you require:
Province: Specify the region applicable for taxation. You can define whether the billing or the shipping address is subject to taxation using the "Address for Canadian taxes calculation" field in the Common Tax Settings.
Tax class: Specify the type of products (tax class) to which the tax rate applies. For example, if you select the "Default tax class" value here, the tax rate will apply to all products with this tax class assigned.
User membership: Specify the user membership level falling under taxation. The "Ignore membership" value allows you to create a tax rate applicable to all orders irrespective of the buyer's membership.
Taxable base: Specify the type of costs based on which the tax rates should be calculated.
Rate: Specify the tax rate amount as a percentage of the selected taxable base.
Please note that the settings become active when you submit 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.
Related pages: