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How do I find the taxability of a tax code in Canada and its Provinces?

Overview

How do I find out if Freight or any other tax code is taxable in Canada?

Environment

Avatax Calc

Resolution

 There is a simple and easy way to determine taxability for freight in the provinces of Canada using the Basic Tax Calculator.  Bear in mind this will work only if you have nexus selected for Canada already.


What you will need:

  • A test address for each province you want to test. The minimum city, province and postal code will work (just dont try to validate).
  • The freight tax code you are currently using.

 

Once you have that information:

 

  • Launch the basic tax calculator from the TOOLS menu in the Admin Console.
  • Enter the test address for the province you want to test.Enter the freight tax code.
  • Enter an amount for freight (I recommend using $10 or $100 as its easier to work with).
     

The results will provide the percentages of tax if applicable.