How to configure Canadian and Quebec taxes in WooCommerce

For online store owners in Canada, once you’ve created a website with WooCommerce, you must set up your taxes properly. This is to comply with national and local tax laws. In this article, we’ll walk you through the steps for configuring Canadian and Quebec taxes in WooCommerce.

Best points to remember

• Enable Tax Management: Go to WooCommerce > Settings > General and check “Enable taxes”.
• Configure tax classes: Add tax classes for GST (Canada) and QST (Quebec).
• Add Tax Rates :
• GST: 5% for all of Canada.
• QST: 9.975% for Quebec.
• Check Tax Settings: Ensure taxes are calculated according to the customer’s delivery address.
• Test Configuration: Simulate an order to check that GST and QST are correctly applied.
• Update Rates: Modify tax rates in WooCommerce if percentages change.
• Consult Help: Refer to the WooCommerce documentation or contact support for further assistance.

Enable tax management in WooCommerce

The first step is to enable tax management in WooCommerce. Here’s how to do it:

1. Access your WordPress dashboard.
2. Go to WooCommerce > Settings.
3. Click on the “General” tab.
4. Check the “Enable taxes” box.
5. Save changes.

Configuring tax classes

Next, you need to configure the tax classes for Canada and Quebec.

1. Go to WooCommerce > Settings > Taxes.
2. Click on “Additional tax classes”.
3. Add a new tax class for Quebec, for example, “TPS/TVQ”.
4. Save changes.

Add tax rates

Now you’ll add the tax rates for Canada and Quebec.

Canadian tax rates (GST)

1. In the “Taxes” tab, click on “Standard rates”.
2. Click on “Insert a line”.
3. Enter the following information:
   • Country code: CA
   • Postal code : * (for all zip codes)
   • Rate: 5.0000 (for 5% GST)
   • Tax name: TPS
4. Save changes.

Québec tax rates (QST)

1. In the “Taxes” tab, click on “Tax rates for GST/QST class”.
2. Click on “Insert a line”.
3. Enter the following information:
   • Country code: CA
   • State/province code: QC
   • Postal code : * (for all zip codes)
   • Rate: 9.9750 (for 9.975% QST)
   • Tax name: QST
4. Save changes.

👉 Download CSV file with all Canadian taxes (we cannot be held responsible for changes made by federal and provincial governments).

Check tax settings

To ensure that everything is correctly configured, review the tax parameters:

1. Return to WooCommerce > Settings > Taxes.
2. Under “Tax calculation”, check that “Calculate taxes based on” is set to “Customer delivery address”.
3. Make sure that “Prices entered include tax” is set to your preference (yes or no).
4. Save changes.

Test your configuration

Finally, it is important to test your configuration to ensure that taxes are applied correctly:

1. Add a product to your basket and proceed to checkout.
2. Enter a delivery address in Quebec.
3. Check that GST and QST are correctly applied.

Setting up Canadian and Quebec taxes in WooCommerce may seem complex, but by following these steps, you’ll be able to do it with ease. Be sure to always check current tax rates and stay compliant with local tax laws. If you have any questions or need help, please don’t hesitate to contact us!