Does Magento Charge Tax On Shipping?

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Does Magento charge tax on shipping?

Only if you are registered to remit those taxes to the appropriate government. For example, if you are shipping from Canada and are registered to collect GST and PST, you charge every Canadian customer GST (which is a federal tax) but only people in your own province PST (or HST). And then you send the money to the appropriate government. And t give you a small rebate for your efforts. You do NOT charge taxes to customers in jurisdictions (like say, Australia or USA) who would not normally be paying Canadian taxes. And, you don’t have to make the taxes a line item. Most governments don’t really care if you charge the customer as long as you hand them over. If you are not sure, phone the office of your state/provincial and your federal representative. You don’t need the representative, someone in her office probably knows all about collecting and paying taxes by small businesses.

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Type on PDF: All You Need to Know

A few years ago this was a big problem when it came to taxes in Canada. A lot of Canadians were taking their business to the US or Europe as it became more convenient while the GST/PST was the responsibility of the other country. That's no longer the problem. Canada is a major net exporter to China. When I go to China I have to register with the Chinese customs office and hand over tax receipts on top of the normal duties. This isn't necessary for most Canadians. But it's important to track and account for your taxes from small business. If you have customers come to your own province, tell these people what they are charged and where their profits are going. When you are selling your product/services to the public, include the tax for that jurisdiction on the invoice. Then include a brief explanation of the tax..

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