Canadian Tax Calculation Error

[Rich]

I think I have discovered a Canadian tax error in the British Columbia (BC) Calculation which is causing store owners to overcharge their tax.

BC has two taxes GST and PST. These are supposed to be applied to the order total individually.
This is what currently happens in Miva for BC (I think). GST is applied, added to the total, and then PST is applied to the combined total.
This is incorrect. Both PST and GST should be applied separately against the order total and then added.

EG. an order is $100
GST @ 7% = $7
PST @ 5% = $5.
Order total with tax should be $112

Current wrong calculation:
$100 x 5% (GST) = $105
$105 x 7% (PST) = $7.35
Total = $112.35

The same calculation method in Miva is used for Quebec which is actually correct because Quebec does calculate PST on the total after GST has been added.

[wsmith]

Re: Canadian Tax Calculation Error

Richard,

Open a ticket up with support ([email protected]) and include a link to this thread within the body of the email. Send me a PM with the ticket ID and I can have a support engineer look further into this.

Thank you,

[Eric Foresman]

Re: Canadian Tax Calculation Error

Hi Richard

When setting up the PST rate per province there is a checkbox labeled "Tax Gst?". When checked the module will calculate the GST first and apply it to the sub total before calculating the PST. When it’s not checked it should calculate both separately and be applied after.

Let me know if that option is what you are looking for

-Eric

[Rich]

Re: Canadian Tax Calculation Error

Thanks Eric
Not being a Canadian tax expert, I had no idea. I appreciate the help.