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Sales tax not listed on invoice


windsurfer

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I was discussing taxes with Al. This is what he said about adding a credit card surcharge to the total at the checkout.

Al Brookbanks (CubeCart)

23 Apr, 15:05 BST

"You can only have one tax per product so using this to add a surcharge isn't going to work I don't think. "  I think some custom coding would be required.

I did not ask what inherit meant.

 

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You would choose that tax rate that your taxing authority stipulates.

Research from a few years ago (for me, personally) said that my shipping charges are not taxed only if the charges taken from the customer are exactly that which is paid to the carrier. In other words, if no income is derived from shipping/handling, then there is nothing to tax. On the other hand, if I charge shipping using rates calculated for my benefit (CYA, desired profit, whatever) which are not meant to equitably pay the carrier (such as, $5.00s+h for what the USPS takes for a $1.25 box), then it's a personal tax on the business's profits. But it is not a "sales/use tax".

I could be misinterpreting my research, and it most certainly only applied to my situation.

If you have a CPA, ask them. They should know. If you don't, then a question to your state/county Division of Business Taxes (whatever it may be called) should have some guidance on its web site.

For me, and me alone, my shipping tax rate is set to "Exempt".

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Sales taxes in Canada GST/HST apply to goods and services which include shipping unless the shipped goods are Zero rated such as foods, charities, Disabled equipment etc.
Tax exempt is very rare in Canada on shipped goods and usually only applies to services such as music lessons, swimming lessons etc... where shipping doesn't apply but applies to items shipped internationally. This still begs the question which tax type does one select. Because sometimes tax exempt applies, Zero rated applies or GST?HST applies.

 

Having said that, me selecting the GST/HST works for items shipped inside Canada and when a US customer places an order the Tax Exempt applies so it is all good.

It was just a question of interest why this was done that way and i don't know what happens if i select the Tax Exempt type and i really don't want to try.

 

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