Determining which Tax Authority to Use
When processing orders using Canadian taxation, the Ship to Address's country and state/province determine which tax authority is used for calculating taxes:
- If the Use Taxation option is enabled for the Ship to Address's country on the Set up country names window, verify whether the Ship to Address's state/province code matches a tax code defined on the Set up tax codes window:
- If a match exists, select the Ship to Address's state/province code for the order's Tax Authority on the Enter and edit orders window.
- If a match does not exist, set the order's Tax Authority on the Enter and edit orders window to equal the Tax Authority defined for the Default Organization on the Organization Names window (normally, this is the tax code defined for the Primary GST).
- If the Use Taxation option is not enabled for the Ship to Address's country on the Set up country names window, leave the order's Tax Authority field blank on the Enter and edit orders window. No taxes will be charged.
- For orders for which no country is defined for the Ship to Address, the assumption is that the Ship to customer shares the same home country as the organization and therefore is taxable. For a Ship to Address for which no country is defined, verify whether the Ship to Address's state/province code matches a tax code defined on the Set up tax codes window:
- If a match exists, select the Ship to Address's state/province code for the order's Tax Authority on the Enter and edit orders window.
- If a match does not exist, set the order's Tax Authority on the Enter and edit orders window to equal the Tax Authority defined for the Default Organization on the Organization Names window (normally, this is the tax code defined for the Primary GST).