This tutorial is the second in a series which aims to teach zen cart users and store owners how they can configure their shops for Canadian taxes.
After creating the HST zone, click its row to create a level of Sub Zones within it. For this zone, you will make three new sub zones: Nova Scotia, New Brunswick, and Newfoundland. Make sure that all of these sub zones have Canada set as the country.
Next, we will deal with the GST Shipping tax class. It is important to note that this is not a zone, and you will use the pre-existing ‘Canada’ tax zone when setting this tax class up. You should also be aware of the fact that shipping GST will be charged automatically to Canadian addresses, but on addresses anywhere else in the world. Do no manually apply shipping GST to export orders either, as this could put you in conflict with the Canada Customs & Revenue Agency (1-800-959-5525). Also keep in mind that you can only assign one tax class to any given product. Since shipping GST needs to show up separately, we will be creating it separately.
Go to locations/taxes –> Tax Classes, and create two tax classes. The first one’s title will be ‘GST/HST/PST Class’, and in the description, put ‘All taxable goods’.
The second will be titled ‘GST on Shipping’, and described as ‘GST on shipping within Canada’.
After you have created the tax classes, you will deal with the tax rates. Zen Cart combines the data from tax zones and tax classes to determine the correct tax rate for an order. While setting these up, it is important to remember that anything you write in the tax rate description will show up on the customer’s invoice.