How to Configure Canadian Tax in Magento 2

Hello Magento Folks,

In this Magento 2 tutorial blog, I will elaborate How to Configure Canadian Tax in Magento 2. Also, check my last post where I have illustrated How to Configure US Tax in Magento 2. 

By default, in the Magento store, the store admin can set up various tax rates to evaluate the taxes on the basis of different countries. This configuration of taxes is displayed to customers on the order invoice. Checkout How to Setup Tax Rules for Magento 2.

If we are setting up the tax rules for Canada then first we need to set GST tax rates and after that specifically for Saskatchewan, we will need to configure PST tax rates. 

Check out the below tutorial for configuring Canadian Tax in Magento 2 store.

Steps to Configure Canadian Tax in Magento 2:

Step 1: Navigate to Stores > Settings > Configuration and explore the sales option and choose the Tax field.

Step 2: Tax Classes section

Tax Class for Shipping: Set this field to none.

Default Tax Class for Product: There is no need to change this field unless you want a specific class as the default one.

Default Tax Class for Customer: There is no need to change this field unless you want a specific class as the default one.

Step 3: Calculation Settings

Tax Calculation Method Based On: Select the appropriate option from Unit Price, Row Total, Total to calculate the taxes. Recommended settings “Total”.

Tax Calculation Based On: Select the option to determine on what basis the tax will be calculated. Recommended settings “Shipping Address”.

Catalog Prices: For Canada, Tax setup keeps this field as Excluding Tax.

Shipping Prices: For Canada, Tax setup keeps this field as Excluding Tax.

Apply Customer Tax: Determine whether the tax is shown before or after the discount coupon is applied to the product. Recommended settings “After Discount”.

Apply Discount On Prices: Determine whether the discount should be applied to the product price including or excluding tax. Recommended settings “Excluding Tax”.

Apply Tax On: The tax should be applied to the original price or custom price. Recommended settings “Custom Price (if available)”.

Enable Cross Border Trade: For Canada-based merchants, this setting is usually Not Applicable.

Steps 4: Default Tax Destination Calculation

Default Country: Set it to Canada.

Default State: Set the business location.

Default Post Code: Set postcode according to the state.

Steps 5:Price Display Settings

Display Product Prices In Catalog: Determine how the product prices are displayed, including tax, excluding tax, or both.

Display Shipping Prices: Determine how the shipping prices are displayed, including tax, excluding tax, or both.

Steps 6: Shopping Cart Display Settings

For determining how the taxes will be displayed in the shopping cart of the customers

Display Prices: Set it to Excluding Tax.

Display Subtotal: Set it to Excluding Tax.

Display Shipping Amount: Set it to Excluding Tax.

Include Tax In Order Total: Set it to Yes.

Display Full Tax Summary: Set it to Yes.

Display Zero Tax Subtotal: Set it to Yes.

Step 7: Orders, Invoices, Credit Memos Display Settings

For determining how the taxes will be displayed in different order documents

Display Prices: Set it to Excluding Tax.

Display Subtotal: Set it to Excluding Tax.

Display Shipping Amount: Set it to Excluding Tax.

Include Tax In Order Total: Set it to Yes.

Display Full Tax Summary: Set it to Yes.

Display Zero Tax Subtotal: Set it to Yes.

Step 8: Fixed Product Taxes

Enable FPT: Set it to No, to approve the Canada Tax configuration.

Save the Config.

Final Words:

Hopefully, all are able to Configure Canadian Tax in Magento 2. For precise configuration, you can Hire Certified Magento Developer so you have better options to focus on all other mandatory tasks for your Magento 2 store.

In case of any difficulties, you can comment in the comment section below.

Happy Reading!

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