Shopify incorrectly charging PST on Canada Post postage shipping to British Columbia (BC)

Highlighted
Tourist
10 0 2

I'm a Canadian Shopify store owner located in Winnipeg. Beginning in late February, Shopify started charging adding PST on postage on Canada Post shipments to BC in the checkout page. Anyone else notice this?

Shopify charging pst on Canada Post shipping assumes that I and all other Shopify shop owners are going to create a Canada Post shipping label through Shopify. If I create a shipping label to BC with my own Venture One Canada Post account, I am not being charged the pst.

Why would Shopify be any different than me when purchasing a label. Canada Post would not be treating me any different than Shopify when collecting BC’s pst and I believe that Canada Post would be at the top of BC’s taxation department’s scrutiny.

If Shopify insists on applying pst on Canada Post labels, I would like the tax overrides on shipping fixed. I currently have a shipping pst override of 0% set for BC but it doesn’t work, otherwise I wouldn’t have the pst showing on shipping for orders from BC. I would like the ability to tax override your shipping pst applied to Canada Post shipping to BC and I will purchase my shipping labels through my own Canada Post account.

Makes we wonder, if Canada Post isn’t charging Shopify pst on shipping labels, where is the money going? Is it lining Shopifys pockets? Let fix this improperly charged tax and let also fix the tax overrides that don't work in the admin. 

Thanks,
Grant.

0 Likes
Highlighted
Shopify Partner
2 0 1

This same issue is occuring on a store I manage. What's going on Shopify?

0 Likes
Highlighted
Shopify Staff
Shopify Staff
253 1 25

Hi there Grant!

My name is John and I'm a Guru here at Shopify!

Thanks for taking the time to outline your issue here so extensively.

There are a few possibilities as to what's happening here, so we'd like to provide some info first around this and if necessary we can look into your account in particular.

Firstly, for the tax being applied to Canada Post labels; this is coming from Canada Post themselves as outlined here and is not initiated by Shopify.

We can't comment on whether or not you would be paying this tax if purchasing labels directly from them yourself but you can try contacting their support for clarification on that.

Secondly, if you have created a tax override for shipping rates in your Shopify admin this would apply to manual rates (weight- or price-based) that are set in the Shopify admin and not to carrier-calculated rates like those applied by Canada Post.

I will also have a member of our support team send you an email privately now to your account address so we can discuss the specifics of your account and maybe provide some more clarification.

Best of luck with everything here!

Regards,
John

0 Likes
Highlighted
Highlighted
Shopify Partner
555 1 19

Regarding PST, let me give some clarification here.

No Provincial sales tax is charged if the total price of International Postage per transaction (single or multiple items) is $5 or more.

(The $5 limit doesn’t include amounts spent on domestic postage and other purchases.)

If it’s less than $5, and:

Sent from Tax applied

NB, NL, NS, ON, PEIHST
AB, BC, MB, NT, NU, SK, YTGST
QCGST and QST

 

I hope i was able to clear our your doubt. Can you please check the total cost of the order for which you were trying to ship using your own Canada Post account? Also, if you are planning to use your own account for rates, then you can try the Multi Carrier Shipping label app.

Product Owner @ PluginHive
Shipping Automation | FedEx shipping | Multi-carrier shipping | Shipment Tracking | Australia Post shipping
0 Likes
Highlighted
New Member
1 0 0

Is the issue solved?


@Grant_Pauls_hom wrote:

I'm a Canadian Shopify store owner located in Winnipeg. Beginning in late February, Shopify started charging adding PST on postage on Canada Post shipments to BC in the checkout page. Anyone else notice this?

Shopify charging pst on Canada Post shipping assumes that I and all other Shopify shop owners are going to create a Canada Post shipping label through Shopify. If I create a shipping label to BC with my own Venture One Canada Post account, I am not being charged the pst.

Why would Shopify be any different than me when purchasing a label. Canada Post would not be treating me any different than Shopify when collecting BC’s pst and I believe that Canada Post would be at the top of BC’s taxation department’s scrutiny.

If Shopify insists on applying pst on Canada Post labels, I would like the tax overrides on shipping fixed. I currently have a shipping pst override of 0% set for BC but it doesn’t work, otherwise I wouldn’t have the pst showing on shipping for orders from BC. I would like the ability to tax override your shipping pst applied to Canada Post shipping to BC and I will purchase my shipping labels through my own Canada Post account.

Makes we wonder, if Canada Post isn’t charging Shopify pst on shipping labels, where is the money going? Is it lining Shopifys pockets? Let fix this improperly charged tax and let also fix the tax overrides that don't work in the admin. 

Thanks,
Grant.


 

0 Likes
Highlighted
Excursionist
22 1 5

@Shashwat no, it's not resolved, but there are suggestions for fulfillment apps ($$) to get around the problem in this thread.

0 Likes
Highlighted
New Member
1 0 0

Hi , I hope you don’t mind I saw your post and I’m new to Shopify and thought I would shoot you a quick question. I just started my store in Vancouver BC and I was curious about the taxes and how that works when selling . I had my first few orders and noticed there were no taxes applied at checkout? Do you have to set up the tax information yourself ? Thanks , Darral 

0 Likes
Highlighted
Excursionist
22 1 5

@Dexterandzoes In your Shopify admin, click on "Settings" at the bottom left, then choose "Taxes". There are some help files linked there.

Depending on how much you sell, you may be required to get a GST number and remit taxes quarterly, but you really should talk to an accountant or tax lawyer to determine what taxes you need to charge for your own situation.

Highlighted
Shopify Staff
Shopify Staff
63 1 10

Hey there, 

Are you talking about PST being applied on shipping to your customers - or are you talking about PST being applied to the purchase of labels? These are two different things. 

The end buyer should be paying PST on delivery charges - whether or not you need to pay PST on a label is a different conversation, and is an input supply. The actual delivery charges (Shipping) charged to a buyer should have PST applied if the goods are taxable, irrespective of whether or not you as the merchant paid / will pay PST on the label.


0 Likes