Tax issue on osCMax

[edimv]

Hello there,
I am having an issue with the way Gross Product price appears in the control panel. Here is the example:
I have a product with a value $2.00, have selected Taxable item under Tax class and the Gross Product price appears $3.90! Acting weird! In the live store the price appears $2.60!
By the way, I have set the tax zones and rates and I am logged in as I reside in Ontario. The tax rate gst is 5%, so I would expect the gross product price to be $2.10.
I would appreciate any feedback on why that happens.

Thank you in advance
Ed

[jpf]

Setup TAX zones in Canada:
=====================

STEP (1): Set the location for your store:

Configuration --> My Store

- Country: Canada
- Zone: Ontario

STEP (2): Create the "Tax Zones". The are geographical regions where a particular set of tax laws applies

Locations/Taxes --> Tax Zones

Create the GST Zone for most of Canada (most of Canada except NS, NB, NL)
- Zone Name: Canada GST Zone
- Description: GST

Create the HST Zone for Canada (For only NS, NB, NL)
- Zone Name: Canada HST Zone
- Description: HST

Now click on the newly created "Canada GST Zone" row to drill down one level to "Sub Zones"
Click INSERT to create 10 new sub-zones, one at a time:

- Country: Canada; Zone: Yukon Territory
- Country: Canada; Zone: Northwest Territories
- Country: Canada; Zone: Nunavut
- Country: Canada; Zone: British Columbia
- Country: Canada; Zone: Alberta
- Country: Canada; Zone: Saskatchewan
- Country: Canada; Zone: Manitoba
- Country: Canada; Zone: Ontario
- Country: Canada; Zone: Quebec
- Country: Canada; Zone: Prince Edward Island

Now click on the newly created "Canada HST Zone" row to drill down one level to "Sub Zones"
Click INSERT to create 3 new sub-zones, one at a time:

- Country: Canada; Zone: Nova Scotia
- Country: Canada; Zone: New Brunswick
- Country: Canada; Zone: Newfoundland

==============

Click on "BACK" to go up one level.
Now create the Ontario Provincial Tax Zone (or which ever ZONE you need to charge PST for)

Click Insert

- Zone Name: Ontario PST Zone
- Description: PST-ON

Now click on the newly created "Ontario PST Zone" row to drill down one level to "Sub Zones"
Click INSERT to create new sub-zone:

- Country: Canada
- Zone: Ontario

==============

Do NOT create a separate Tax zone for Shipping. You will simply use the "Canada" tax zone for the GST Shipping tax class (below).

Important: this means that SHIPPING GST will only be charged to destinations within Canada, but NOT charged on exports.

STEP (3): Create the "Tax Classes"

Note: You can only assign ONE
Tax Class to a product. But since we want shipping GST to
show up separately, we will make a separate Tax Class just for it.

Locations/Taxes --> Tax Classes

create TWO (2) tax classes:

- Tax Class Title: GST/HST/PST Class
- Description: All taxable goods

- Tax Class Title: GST Shipping class
- Description: GST on shipping within Canada

STEP (4): TAX RATES

Tax Rates associate Tax Zones & Tax Class to determine
the correct Tax Rate.

HINT: The "DESCRIPTION" is what shows up on the invoice
so use it judiciously!!!!!!!!!!!!!

Locations/Taxes --> Tax Rates

create SIX (6) Tax Rates:

- Tax Class Title: GST/PST/HST Class
- Zone: Canada GST Zone
- Tax Rate (%): 5.0000
- Description: 5.0% GST#99999 99999 RT0001
- Priority: 1

Note: Insert your GST# as part of DESCRIPTION and it will show up on invoice. This is a requirement for GST for most items within Canada.
Leave PRIORITY at "1" for a non-cumulative tax (i.e. Ontario)


Tax Class Title: GST/PST/HST Class -Note: Yes, this is the same one you just used
- Zone: Ontario PST Zone
- Tax Rate (%): 8.0000
- Description: 8.0% PST (Ontario)
- Priority: 1

Note: Leave PRIORITY at "1" for a non-cumulative tax (i.e. Ontario)
but change to "2" for cumulative tax (i.e. You are a Quebec store)

Tax Class Title: GST/PST/HST Class -Note: Yes, this is the same one you just used
- Zone: HST Zone
- Tax Rate (%): 13.0000
- Description: 13% HST#R99999 9999 RT0001
- Priority: 1

That takes care of taxes on products. And now, the Shipping taxes:

- Tax Class Title: GST Shipping Class
- Zone: Canada GST Zone
- Tax Rate (%): 5.0000
- Description: 5.0% GST on shipping
- Priority: 1

- Tax Class Title: GST Shipping Class (note some provinces do not require PST to be charged on shipping - see your tax department)
- Zone: Ontario PST Zone
- Tax Rate (%): 8.0000
- Description: 8.0% PST (shipping)
- Priority: 1 -but change to "2" for cumulative tax (i.e. You are a Quebec store)

- Tax Class Title: GST Shipping Class
- Zone: HST Zone
- Tax Rate (%): 15.0000
- Description: 15% shipping HST#99999 9999 RT0001
- Priority: 1

STEP (5): Specify the appropriate Tax Class for SHIPPING MODULES

MODULES --> SHIPPING

Edit whichever shipping module(s) you are using.

Tax Class: GST Shipping Class

STEP (6): Specify the appropriate Tax for PRODUCTS

This may take some time....

CATALOG --> Categories/Products

Drill down to each product. Click EDIT

TAX CLASS: "GST/PST/HST CLASS"

Example Output:

Shipping to Ontario:

Sub-Total: $69.00
Per Item (Best Way): $10.00
8.0% PST-ON + 5.0% GST #99999 9999 RT0001: $8.97
7.0% GST (shipping) + 8.0% PST (shipping): $ 1.30
Total: $86.94