My accountant didn't seem to be very clear on this so I'm asking you fine folks... Do I charge the tax on the shipping amount as well? To make it a little more complicated, I sell some medical products that are fully or partially zero-rated for taxes.
- One product is zero-rated for both taxes... so then I wouldn't charge taxes on the shipping at all correct?
- the other product I have to charge GST/HST on but no other provincial taxes. So then would there be additional federal tax on the shipping?
Hello there Matthew!
Will here from Shopify to help out with your shipping and taxes :)!
I can't officially state on if it would be applicable to charge taxes for your Canadian Orders but, we do have this documentation on enabling or disabling it if you can get a definite response.
I decided to delve into a bit of research, and I found this here from the goverment of Canada: http://www.canadabusiness.ca/government/taxes-gst-hst/federal-tax-information/overview-of-charging-a... .It seems to break down some more specifics on when it might be applicable to charge taxes - it may be worth just double checking with your accountant after words though :)
I hope that helps you! If you need further assistance, definitely let us know. Thanks for taking the time to reach out to us.
Guru @ Shopify
When using Shopify Shipping, the returned rates are without taxes?
Your taxes defaults seems to be logicial for a canadian business, but I find it surprising that taxes does not apply to shipping by default. I should enable it for a business in Canada right? Or is it because Canada Post prices already includes taxes?
A particular way out of the headache to know which taxes are applicable for a shipment is to use shipping carriers which return taxes for that territory. For example UPS returns taxes based on the destination of shipment. In order to try these carriers, you can have an account with any of them. For example account with UPS, FedEx, DHL, and then you can use the Multi Carrier shipping label app to get shipping rates + taxes on your orders.