Here is a description of how VAT/GST works in Smith Cart:

VAT/GST Tax – Value added tax (VAT), or goods and services tax (GST) is a tax used by non United States countries and is levied on any product that is added to the cart. When VAT/GST Tax is checked in the cart admin settings the cart will charge the tax rate entered in the “Tax Rate” textbox and implement the VAT/GST tax calculation.

You will need to load all product pricing inclusive of VAT/GST tax.

At checkout on the cart, confirmation pages and invoice the cart will display the VAT/GST tax as follows.
Example:

Product 1: $110
Product 2: $55
Sub-total: $165
Shipping: $22
Total (incl. VAT): $187
VAT included (10%): $17
The formula for the tax (VAT) is as follows:
VAT($) = Total($) * VAT(%) / (1 + VAT(%))

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At your service,
Dave Smith

We are busy working on sponsored changes right now. If you are interested in sponsoring the change please send an email to sales@smithcart.com. If not we will add to our dev list and it will be completed in fifo order.

-Scott

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Scott Kelly
Project Manager

Thanks for the info on the new HST we will definitely be looking into this as Canada is an important market.

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At your service,
Dave Smith