Setting Taxes in OpenCart

You may follow these steps to setup taxes in OpenCart (Canada as an example)

  1. You may visit the Canada Revenue Agency website for the GST/HST provincial rates table. This will help you setup the correct tax rates
  2. Create one Zone per province
    1. In the Dashboard Click System –> Localisation — > Zones
    2. Enter the Geo Zone Name (Province Name) and the Description
    3. Click the + sign below to Add Geo Zone (when you hover your mouse over it will say “Add Geo Zone”)
    4. Select Country as Canada and Zone as the same Province
    5. Click the Save icon to save your changes
    6. Repeat Step 2 to 5 for each province and territory
  3. Create a GST Zone for provinces having the Federal and Provincial taxes adding up
    1. In the same Geo Zone Add a Geo Zone Name Canada Provincial Taxes and same as description
    2. Click the Add Geo Zone icon
    3. Add Country Canada and Zone Quebec
    4. Repeat Step 2 to add Country Canada and Zone Manitoba
    5. Repeat Step 2 to add Country Canada and Zone British Columbia
    6. Repeat Step 2 to add Country Canada and Zone Saskatchewan
  4. Create the Tax Rates per province and one for the GST as well
    1. In the Dashboard Click System –> Localisation –> Tax Rates
    2. Click the + sign icon on the top right to create a Tax Rate
    3. Enter Tax Name as your Province Name e.g. Alberta
    4. Enter Tax Rate for that Province e.g. 5.0
    5. Type should be Percentage
    6. Check Customer Group default
    7. Geo Zone e.g Alberta
    8. Repeat Step 2 to 7 for each Province
    9. You must also create a Tax Rate for Canada GST
      1. Tax Name: Canada GST
      2. Tax Rate: 5.0
      3. Type: Percentage
      4. Customer Group: check default
      5. Geo Zone: Canada Provincial Taxes (this was created in Step 3)
  5. Create one Tax class for Canada
    1. In the Dashboard Click System –> Localisation –> Tax Classes
    2. Click the + icon on the top right to create a Tax Class
    3. Tax Class Title: Canada Taxes
    4. Tax Class Description: Canada Taxes
    5. Click the button below to add Tax Rate Based on and Priority for each province
    6. Based on should be Shipping Address and Priority 1 for all
  6. Change each products tax rule so the Canadian Tax apply to Canadians
  7. Check your shipping fees to make sure the taxes apply
  8. Test Test Test to confirm all the working as it should be.