Quebec tax rate incorrect

  • Resolved mphdavidson

    (@mphdavidson)


    4 years ago

    The sales tax rate for Quebec is being calculated as 5%, but it is supposed to be 14.975%.

    It seems the app is using the GST rate for all of Canada (5%) but 0% for Quebec as a province, when it should be 9.975%.

    In addition, when I add QC tax rates under “standard taxes” in hopes of overriding the incorrect tax rates, the row is being overridden the first time a user tries to calculate an order to Quebec. As in, at checkout, if a user enters their address and it’s a Quebec address, the totals are calculated using 5% tax, and this action changes the Standard Tax rates in the backend.

    Assistance would be greatly appreciated!

Viewing 7 replies - 1 through 7 (of 7 total)
  • Plugin Support tijosh

    (@tijosh)

    Hey there @mphdavidson,

    The WooCommerce Tax extension relies on an external tax rating service to calculate taxes at checkout. Because stores in Canada have varying tax responsibilities, our tax calculation partner is investigating ways to improve cross-province tax handling.

    Currently, when the store is in another province, the API calculates 5% GST for purchases from customers in Quebec and doesn’t add Quebec sales tax.

    If your store needs to handle that situation differently, we suggest deactivating Automated Taxes at WooCommerce > Settings > Tax and adding all tax rates manually following our guide.

    In case it helps, there’s a chart here outlining Canadian stores’ tax responsibilities. We always recommend verifying with a local tax professional which taxes the store must collect.

    • This reply was modified 4 years ago by tijosh. Reason: Added link to Canadian tax chart
    Thread Starter mphdavidson

    (@mphdavidson)

    Thanks for the thoughtful reply.

    Setting up Canadian taxes this way is simple enough, however US taxes seem to be a fairly complicated mess of local, county, and state taxes.

    Is there a way to manually enter Canadian taxes while relying on the automated tax system for US sales?

    Plugin Support tijosh

    (@tijosh)

    Howdy @mphdavidson,

    Is there a way to manually enter Canadian taxes while relying on the automated tax system for US sales?

    I’m afraid there isn’t. When automated taxes are enabled, all manually-entered rates will be overridden by the API rates. An alternative would be to check out an extension like AvaTax by Avalara. I’d recommend reaching out to their team here to see if their service will work for your specific tax setup.

    Thread Starter mphdavidson

    (@mphdavidson)

    That’s unfortunate but I understand. Thanks for referring me to an alternative!

    Hopefully your external tax rating service is able to sort things out soon!

    Thread Starter mphdavidson

    (@mphdavidson)

    One final question: Who is your external tax rating service?

    Rambo

    (@rahul020691)

    Hi @mphdavidson,

    WooCommerce Shipping & Tax uses Jetpack to obtain the API response from TaxJar for tax rates. So it uses TaxJar for taxes.

    I hope this information is helpful to you.

    Thread Starter mphdavidson

    (@mphdavidson)

    This is great, thank you!

Viewing 7 replies - 1 through 7 (of 7 total)
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