Accurately calculates GST/HST/PST/QST/RST by province. Also auto-classifies product categories (accounting for fine-grained rules like 6 or more donuts being tax-exempt while 5 or fewer are taxable). Tax liability insights can now be tracked at the province and territory level as well.
Correctly calculates the 5 types of tax that vary by province (GST/HST/PST/QST/RST) based on the buyer's province, and shows each one itemized on the buyer's screen.
Shopify suggests and applies product categories in line with Canada-specific rules, such as "6 or more donuts count as basic groceries and are tax-exempt, while 5 or fewer count as a snack and are taxable."
Insights that were previously at the country level now extend to each province and territory within Canada, making it clear where you're likely to incur registration and collection obligations.
In Canada, federal and provincial taxes are intertwined, and the types differ from province to province. The article cites the following 5 taxes.
| Abbreviation | Full name (not stated in the article) | Nature |
|---|---|---|
| GST | Federal goods and services tax (the article mentions only the abbreviation) | A nationwide tax applied at the federal level |
| HST | Harmonized sales tax (the article mentions only the abbreviation) | A tax that merges federal and provincial taxes into one |
| PST | Provincial sales tax (the article mentions only the abbreviation) | A tax levied independently by some provinces |
| QST | Quebec Sales Tax (the article mentions only the abbreviation) | A tax specific to Quebec |
| RST | Retail Sales Tax (the article mentions only the abbreviation) | A tax levied independently by certain provinces |
GST/HST/PST/QST/RST are applied correctly based on the buyer's province. Merchants don't have to remember the rate for each province.
Rather than a single "combined tax amount," each tax is shown separately on the buyer's screen. This is more transparent and works well as a receipt.
Previously, a single tax rate tended to be applied to the entire shipping cost, so when zero-rated items were mixed in, over- or under-collection often occurred. With this feature, tax on shipping follows the tax rate of each item in the cart, so tax is calculated accurately even for orders that mix zero-rated and taxable items.
Shopify Tax combines the province of residence, product category, quantity, and shipping apportionment to ultimately show buyers an order detail that's 'broken down tax by tax.'
Available right away. Any store that sells in or to Canada can adopt it immediately.
When the feature becomes available, you'll receive an email notification. Rolled out gradually. There's no need to eagerly seek it out yourself.
Shopify applies GST/HST/PST/QST/RST based on the customer's province. They're shown individually on the buyer's screen too, so if you rebuild the UI externally, you'll need a design that can handle a per-tax breakdown.
As in the example of 5 vs. 6 donuts,the category classification (taxable ↔ non-taxable) flips depending on quantity. On the front end, it's safest not to present a final tax amount until it's confirmed.
Moving away from the old model that applied a single tax rate to shipping,to an apportioned model where shipping follows each product's tax rate. Order-object parsing and bookkeeping aggregation logic should also be rebuilt on the assumption of per-line-item tax treatment.
From the country level to the province/territory level.the provinces where you should register / collect, which Shopify now surfaces, making it easier to build workflows that tie into tax-advisor coordination and accounting operations.
Existing stores are notified by email and enabled gradually.When a client asks, 'What's the plan for Canada?', first check whether they've received the email; if not yet notified, leave the outlook on rollout timing to the Help Center and the admin-screen display. The article makes no mention of API/Webhook specs.