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How does AvaTax break out Canadian tax calculation?

Overview

I would like to know how AvaTax breaks out Canadian tax calculation.

Environment

Avalara AvaTax

Resolution

  • Overview of Canadian tax types
    • GST - "Goods and Services Tax". Federal(state) level. Applied to TPP and Intangible Personal Property
    • HST - "Harmonized Sales Tax". Federal(state) level. Imposed in Provinces that have "harmonized" their Provincial Sales Tax (PST) with the GST
    • TPS - "Taxe sure let Produits en Services".  GST in French speaking Canada
    • QST/TVQ - "Quebec Sales Tax"/"Taxe du Vente du Quebec". Quebec's individually managed Provincial Sales Tax (PST)
    • PST - "Provincial Sales Tax". Provincial level.
  • If you have nexus only at the country level for Canada, you will always see either HST or GST and that alone.
  • If you have province specific nexus and there is applicable tax at that level, you will see the rates of either GST or HST appropriate PST. 
  • In cases where the Province has chosen to collect HST separately from GST, you will see the CA State tax listed as GST/TPS and the Provincial tax listed as HST.
    • These Provinces include Ontario, New Brunswick, Newfoundland, Labrador, Nova Scotia, and Prince Edward Island.
  • You will see each rate calculated and how much tax that was on each line in the reports, as well as the transaction overview.
  • Below are example Canadian calculations: