Taxes

Zoho Checkout lets you stay compliant with Canadian tax regulations, including GST, PST, HST, and QST, across all your payment pages. Configure tax authorities for different provinces and territories, manage tax-exemptions and create tax groups to handle federal and provincial rules seamlessly.

Enable Sales Tax

In Canada, Sales Tax is a consumption tax imposed by the federal and provincial governments on the sale of most goods and services. To enable sales tax in your Checkout organization:

• Go to Settings and select Taxes.
• Select Enable Sales Tax.
• In the pop-up, click Yes.

Sales tax will be enabled for your organization.

Tax Rates

Once you enable sales tax, the tax rates will be pre-populated based on the federal and provincial tax rates (GST, HST, PST, or QST) applicable to each province and territory. In case you need to manage specific tax exemptions or create a custom tax group for combined federal and provincial rules, you can do so manually.

Create Tax Rates

To create a new tax rate:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Click +New Tax.
• Enter the Tax Name, Rate(%) and Tax Agency.
• Click Save.

you will have created a new tax rate.

Create Tax Groups  

You can create a tax group in Zoho Checkout by combining two or more tax rates. This allows you to associate multiple taxes with an item in your payment page. Here’s how:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Click +New Tax Group.
• Enter the Tax Group Name and select the Associated Taxes
• Click Save.

A new tax group will be created.

Edit Tax Rate/Tax Group

Zoho Checkout allows users to edit tax rates and groups. Here’s how:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Hover over a tax rate or tax group and click the Edit icon.
• Make the necessary changes review and check the Terms and Conditions.
• Click Save.

A tax rate/tax group will be updated.

Delete Tax Rate/Tax Group

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Hover over a tax rate or tax group and click the Bin icon.

The tax rate/group will be deleted.

Tax Exemptions

Tax exemptions apply when customers are not required to pay sales tax due to the nature of the item or their status, such as for resale, non-profit organizations, or specific goods. These exemptions usually vary by province or territory, and some counties or cities may have their own rules. To create a tax exemption:

• Go to Settings and select Taxes.
• Navigate to the Tax Exemptions section and click + New Exemption.
• Enter the Exemption Reason and Description.
• Choose whether the exemption reason is applicable for an Item or a Customer.
• Click Save .

You will have added a tax exemption.

Tax Agencies

A tax agency is a government body authorized to administer tax laws, collect revenue, and ensure business compliance. The default tax agencies configured in Zoho Checkout are:

Zoho Checkout allows users to manually add tax agencies that are not pre-configured. Here is how:

• Go to Settings and select Taxes.
• Navigate to the Tax Agencies section and click + New Tax Agency.
• Enter the Name of the agency and Description.
• Click Save.

You will have added a new tax agency to your organization.

Tax Rules

Tax rules in Zoho Checkout are a specified set of criteria that determine what tax rates should be applied to transactions based on the provincial and federal tax rates set by the Government of Canada.

How Tax Rules Work?

When you create a Tax Rule in Zoho Checkout, you define specific locations such as provinces or territories and map them to their corresponding tax rates. Once the rule is configured, you associate it with the relevant Payment Pages. From that point on, whenever a customer makes a payment, Zoho Checkout automatically detects their billing or shipping address and applies the correct provincial or federal tax rate to the transaction based on the rules you have set up.

Set Up Tax Rules

To create a tax rule:

• Go to Settings and select Taxes.
• Navigate to the Tax Rules sections and click + New Tax Rule.
• Enter the Tax Rule Name.
• Select Country, State and Tax Name.
• Click Save.

You will have created a tax rule.

Associate Tax Rules to Payment Pages

You can configure tax rules for goods and services you provide while creating or editing a payment page. Here’s how:

• Go to Payment Pages.

• Create a new payment page or click Edit next to an existing one.

• Navigate to Tax Information under Configure Page.

• Select Tax Rule.

• Click Save & Publish.

Now, the taxes configured will be applied to the payment page you’ve created.

Edit Tax Rules

You can update the tax rules you create. Here’s how:

• Go to Settings and select Taxes.
• Navigate to the Tax Rules section.
• Hover over the rule you want to modify and click the Edit icon.
• Make the necessary changes and click Save.  

Tax rule will be updated.

Default Tax Rule

Enabling tax settings automatically configures your default tax rules. These rules are applied to all your payment pages unless a custom tax rule is specifically associated during the creation or while editing a payment page.

Delete Tax Rules

When you no longer want to use a tax rule you can delete them. Here’s how:

• Go to Settings and select Taxes.
• Navigate to the Tax Rules section.
• Hover over the rule you want to delete and click the Bin icon.
• In the confirmation pop-up, select Delete.

Tax rule will be deleted.

Tax Settings

Configure your organization’s tax profile by selecting the provinces where you are obligated to collect tax. This will trigger the automatic creation of all necessary provincial tax rates and rules within Zoho Checkout.

Configure Tax Settings

To configure them:

• Go to Settings and select Taxes.
• Navigate to the Tax Settings section.
• Click Configure beside the tax you want to apply.

• In the pop-up, enter the details:

• Tax Agency

• Tax Registration Date

• Click Save.

The tax settings will be configured**.**