Canadian Tax Configuration (GST/PST)

This guide explains how to configure tax for Canadian stores, using Saskatchewan (5% GST + 5% PST) as an example. Canadian stores often need to charge multiple taxes that compound.

Important Legal Notice

warning

The information and examples provided are for general informational purposes only and do not constitute tax or legal advice. J2Commerce and its employees or affiliates make no representations or warranties regarding accuracy or applicability and accept no liability for VAT or tax compliance. Tax regulations, including but not limited to, US, CANADIAN tax or EU VAT rules for digital and physical goods, are complex and subject to change. Users are solely responsible for ensuring compliance and should consult a qualified tax advisor.

Prerequisites

• J2Commerce is installed and configured
• At least one product created
• Knowledge of your province's GST and PST rates

Understanding Canadian Tax

Canadian stores typically charge two taxes:

1. GST (Goods and Services Tax) — Federal tax applied nationwide
2. PST (Provincial Sales Tax) — Provincial tax that varies by province

Some provinces use HST (Harmonized Sales Tax), which combines both into a single rate.

Province	GST	PST/HST	Total Rate
Alberta	5%	0%	5%
British Columbia	5%	7%	12%
Manitoba	5%	7%	12%
Ontario	5%	8% (HST)	13%
Saskatchewan	5%	6%	11%
Quebec	5%	9.975% (QST)	14.975%

Step 1: Create a Geozone for Canada

Create a geozone that covers Canada (or your specific province).

There are two ways you can access the Geozones.

Option A: Go to the J2Commerce icon at the top right corner -> Localization -> Geozones

Option B: Go to Components on the left sidebar -> J2Commerce -> Dashboard -> Localization -> Geozones

• Click New to create a new geozone.

• Fill in the fields:

Field	Value	Description
Geozone Name	Canada	A descriptive name
Country	Canada	Select from dropdown
Zone	All zones	Covers all provinces, or select a specific province

tip

For province-specific tax (like Saskatchewan PST), create a geozone for just that province instead of all zones.

Step 2: Create the GST Tax Rate

Create the federal GST rate.

• Go to J2Commerce -> Localization -> Tax Rates.

• Click New to create a new tax rate.

• Fill in the fields:

Field	Value	Description
Name	Canada-GST	Descriptive name for GST
Tax Percent	5	Current GST rate
Geo Zone	Canada	Select the geozone from Step 1
Status	Published	Must be Published

Step 3: Create the PST Tax Rate

Create the provincial sales tax rate.

1. Go to J2Commerce -> Localization -> Tax Rates.
2. Click New to create another tax rate.
3. Fill in the fields:

Field	Value	Description
Name	Saskatchewan-PST	Descriptive name for PST
Tax Percent	6	Saskatchewan PST rate
Geo Zone	Saskatchewan Zone	Select or create a Saskatchewan geozone
Status	Published	Must be published

Step 4: Create a Tax Profile

Combine both tax rates in a single tax profile.

• Go to J2Commerce -> Localization -> Tax Profiles.

• Click New to create a new tax profile.

Basic Details tab

• Fill in the fields:

Field	Value	Description
Name	Canada Tax Class	Descriptive name
Status	Published	Must be published

Tax Rules tab

• In the Tax Rules section, click Add twice to create two rules.

• Configure the first rule:

Field	Value	Description
Tax Rate	Canada-GST	Select the GST rate
Address Type	Shipping Address	Use shipping address

• Configure the second rule:

Field	Value	Description
Tax Rate	Saskatchewan-PST	Select the PST rate
Address Type	Shipping Address	Use shipping address

Step 5: Configure Global Tax Settings

Configure how J2Commerce handles tax display and calculation.

• Go to J2Commerce -> Setup -> Configuration.

• Click the Product Settings tab.

• Configure the following settings:

Setting	Default	Description
Prices Include Tax	Prices exclude tax	Are your product prices entered with tax included? Canadian stores typically enter prices without tax
Calculate tax based on	Shipping address	Use the billing or shipping address for tax calculation. Tax based on destination
Default Tax Address	Store address	Address to use for tax when the customer has not entered an address. Used before the customer enters their address
Price Display	Price Only	How to display prices on product pages. Show prices without tax
Show Tax Info	Never	Display tax information text with prices. Show prices without tax
Combine Tax Calculations	Yes	Select 'Yes' to combine all applicable tax calculations into one line item at checkout. For example, Sales Tax on products and shipping will display as a single line item instead of two separate tax charges.

Step 6: Apply Tax Profile to Products

Each product must have the tax profile assigned.

1. Go to Content -> Articles and open a product article.
2. Click the J2Commerce tab.
3. Go to the General tab.
4. Find the Tax Profile field and select "Canada Tax Class".
5. Click Save.

Important

If you do not choose the tax profile, tax will NOT be applied in the storefront.

How Tax Appears in Checkout

With GST (5%) and PST (6%) configured:

• Product price: $100.00
• GST (5%): $5.00
• PST (6%): $6.00
• Total: $111.00

Both taxes are calculated on the base product price and displayed separately.

Tips

• Update PST rates when provincial governments change them
• For HST provinces (Ontario, New Brunswick, etc.), create a single combined tax rate
• Quebec uses QST (Quebec Sales Tax) instead of PST — configure it the same way
• Consider using the Advanced Tax Rates App for complex multi-province scenarios

Troubleshooting

Both taxes don't appear at checkout

Cause: Both tax rules must use the same address type.

Solution: Verify that both GST and PST tax rules have "Associated Address" set to "Shipping Address" (or both set to "Billing Address").

PST shows for all provinces instead of just one

Cause: The PST geozone is set to "All zones" instead of a specific province.

Solution: Create a geozone for just your province and assign the PST rate to that geozone.

Tax total seems incorrect

Cause: Tax rates may be compounding incorrectly.

Solution: Ensure both taxes use the same "Associated Address" and check that the "Apply discounts" setting is set to "Before tax."