WorkedExamples VolumeI

ARTS Data Model
Sales Tax Worked Examples

Version 4.01 (August 2003)
Copyright 2003, National Retail Federation.
Logical 02710 - Taxation - Rules View (Release 4.0)

Single Tax Authority - All items taxed
All merchandise & services are to be taxed at 12.5% GST. Tax is calculated and applied to the transaction total

TaxableGroup TaxGroupRule TaxRateRule
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 GST 1 1001 0 false trx pickOne 1 1001 1 percent NULL NULL NULL 12.5%
Single Tax Authority - Some items not-taxed
All merchandise & services except for Bread, Unflavoured Milk, Butter, Fruit & Vegetables and Meat are to be taxed at 12.5% GST.
Tax is to be calculated and applied to the sum of items being sold in each tax group

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed 1 1001 0 false trx pickOne 1 1001 1 percent NULL NULL NULL 0.00%
2 Taxed 2 1001 0 false trx pickOne 2 1001 1 percent NULL NULL NULL 12.5%
Single Tax Authority - Calculate tax on undiscounted price
All merchandise & services except for Bread, Unflavoured Milk, Butter, Fruit & Vegetables and Meat are to be taxed at 12.5% GST.
Tax is to be calculated and applied to the sum of items being sold in each tax group
Tax must be calculated against the un-discounted price, rather than the actual discounted price that the customer is charged.
This rather curious ruling, is a real exanple. Similar rulings have been made by Tax Authorities in the United States as well as parts of Asia, where a retailer price war on some classes of
merchandise had seriously eaten into the tax-base. This ruling is not a simple change to the taxation rate, but a change to the basis of the tax calculation, which necessitates the creation of a new
TaxGroupRule & matching TaxRateRule.

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed 1 1001 0 false trx pickOne 1 1001 1 percent NULL NULL NULL 0.00%
2 Taxed 2 1001 0 true trx pickOne 2 1001 1 percent NULL NULL NULL 12.5%
Single Tax Authority - Threshold taxes (I)
All Shoes & Apparel are to be taxed at 15% GST, but only if the undiscounted unit price of the item is $100.00 or more. If the undiscounted unit price of the item is below $100.00 then the
item is taxed at 0%.
Note: This example differs from the following example, in that the 15% tax is calculated upon the entire price of the item.
All other merchandise & services except for Bread, Unflavoured Milk, Butter, Fruit & Vegetables and Meat are to be taxed at 12.5% GST, which is applied to the discounted price paid.

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
A Food A 1001 0 false trx pickOne A 1001 1 percent NULL NULL NULL 0.00%
B Taxed B 1001 0 false trx pickOne B 1001 1 percent NULL NULL NULL 12.5%
C Shoes & Apparel C 1001 0 true trx pickOne
C 1001 1 percent $0.00 $99.99 NULL 0.00%
C 1001 2 percent $100.00 NULL NULL 15.00%
Single Tax Authority - Threshold taxes (II)
All Shoes & Apparel are to be taxed at 15% GST, but only if the undiscounted unit price of the item is $100.00 or more. If the undiscounted unit price of the item is below $100.00 then the
item is taxed at 0%.
Note: This example differs from the previous example, in that the 15% tax is calculated upon the excess above $100.00 ie: the first $100.00 is taxed at 0%
All other merchandise & services except for Bread, Unflavoured Milk, Butter, Fruit & Vegetables and Meat are to be taxed at 12.5% GST;

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
A Food A 1001 0 false trx pickOne A 1001 1 percent NULL NULL NULL 0.00%
B Taxed B 1001 0 false trx pickOne B 1001 1 percent NULL NULL NULL 12.5%
C Shoes & Apparel C 1001 0 true trx taxTableExcess
C 1001 1 percent $0.00 $99.99 NULL 0.00%
C 1001 2 percent $100.00 NULL NULL 15.00%
Single Tax Authority - Threshold taxes (III)
A nominal 6% sales tax is to be calculated using the following table:
Note: This example is showing the tax configuration data that a suitably programmed POS requires to implement this rule. In particular, the POS is expected to use business process rules to:
Recognise that the NULL value in the last table entry makes the last table entry is open-ended.
Split the taxable amount as required for calculation. E.g. $6.57 is split into six multiples of the final open-ended table entry ($1.00) plus $0.57 giving total tax of 6 times $0.06 plus $0.04 =
$0.40

Taxable Amount Tax to Pay
$0.01 - $0.05 $0.00
$0.06 - $0.16 $0.01
$0.17 - $0.33 $0.02
$0.34 - $0.50 $0.03
$0.51 - $0.68 $0.04
$0.69 - $0.84 $0.05
$0.85 - $0.98 $0.06
$1.00 - $0.06
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
A NonTaxed A 1001 0 false trx pickOne A 1001 1 percent NULL NULL NULL 0.00%
B Taxed B 1001 0 true trx taxTableMultiples
B 1001 1 flat $0.00 $0.05 $0.00 NULL
B 1001 2 flat $0.06 $0.16 $0.01 NULL
B 1001 3 flat $0.17 $0.33 $0.02 NULL
B 1001 4 flat $0.34 $0.50 $0.03 NULL
B 1001 5 flat $0.51 $0.68 $0.04 NULL
B 1001 6 flat $0.69 $0.84 $0.05 NULL
B 1001 7 flat $0.85 $0.99 $0.06 NULL
B 1001 8 flat $1.00 NULL $0.06 NULL
City, County & State Taxes - Varying Rates for each Authority
All merchandise & services except for Bread, Unflavoured Milk, Butter, Fruit & Vegetables and Meat are to be taxed at:
City: 1.75%
County: 3.67%
State: 6.33%
All three taxes are to be calculated and applied at the transaction level, none of the taxes is compounding

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
1 City 0 false trx pickOne 1 City 1 percent NULL NULL NULL 0.00%
1 County 0 false trx pickOne 1 County 1 percent NULL NULL NULL 0.00%
1 State 0 false trx pickOne 1 State 1 percent NULL NULL NULL 0.00%
2 Taxed
City, County & State Taxes - Compounding Taxes (I)
City: 1.75%
County: 3.67%
State: 6.33%
All three taxes are to be calculated and applied at the transaction level
County tax is to be compounded upon City tax; while State taxes are to be compounded upon County (& City) tax

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
City, County & State Taxes - Compounding Taxes (II)
City: 1.75%
County: 3.67%
State: 6.33%
All three taxes are to be calculated and applied at the transaction level
County & State taxes is to be separately compounded upon City tax.

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Tax Rule & Rate Changes - Simple Rate Change
City: 1.75%
County: 3.67%
State: 6.33%
From September 1
st
2002, the County tax rate will be 4.67%. This rate change is recorded using EVENT and it's sub-entities:

After September 1
st
2002, the taxation rule tables will contain:

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Event DataMaintenanceEvent TaxMaintenanceEvent TaxRateRuleMaintenance
Event
ID
Event Typ
Sched.
Start
Actual
Start
Sched.
End
Actual
End
Event ID Event Typ Event ID Event Typ
Event
ID
Tax
Gp.
ID
Athy.
ID
Rte.
Seq.
No
Type
Code
Min.
Tax
Amt.
Max.
Tax
Amt.
Amount Percent
1 Data Maint 1-Sep-2002 NULL NULL NULL 1 Tax Maint 1 Rate 1 2 County 0 percent NULL NULL NULL 4.67%
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Tax Rule & Rate Changes - Rule Change
City: 1.75%
County: 3.67%
State: 6.33%
From September 1
st
2002, the City & County taxes will be compounded upon the State tax. This rule change is recorded using EVENT and it's sub-entities:

After September 1
st

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Event DataMaintenanceEvent TaxMaintenanceEvent TaxGroupRuleMaintenance
Event
ID
Event Typ
Sched.
Start
Actual
Start
Sched.
End
Actual
End
Event
ID
Tax
Gp. ID
Athy.
ID
Compound
Seq. No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
1 Data Maint 1-Sep-2002 NULL NULL NULL 1 Tax Maint 1 Group 1 2 City 2 false trx pickOne
2 Data Maint 1-Sep-2002 NULL NULL NULL 2 Tax Maint 2 Group 2 2 County 2 false trx pickOne
3 Data Maint 1-Sep-2002 NULL NULL NULL 3 Tax Maint 3 Group 3 2 State 1 false trx pickOne
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Tax Rule & Rate Changes - Tax Holiday (I)
City: 1.75%
County: 3.67%
State: 6.33%
The following rate changes are effected using EVENT and it's sub-entities:
From September 1
st
2002, the County tax rate will be 4.67%

There is a Tax Holiday on City tax for the month of October 2002
During the month of October 1
st

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Event
ID
Event Typ
Sched.
Start
Actual
Start
Sched. End
Actual
End
Event
ID
Tax
Gp.
ID
Athy.
ID
Rte.
Seq.
No
Type
Code
Min.
Tax
Amt.
Max.
Tax
Amt.
Amount Percent
1 Data Maint 1-Sep-2002 NULL NULL NULL 1 Tax Maint 1 Rate 1 2 County 0 percent NULL NULL NULL 4.67%
2 Data Maint 1-Oct-2002 NULL 31-Oct-2002 NULL 2 Tax Maint 2 Rate 2 2 City 0 percent NULL NULL NULL 0.00%
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Tax Rule & Rate Changes - Tax Holiday (II)
City: 1.75%
County: 3.67%
State: 6.33%
From August 15
th
2002, until August 30
th
, all 'School Supplies' will be tax-free.

Note: This rule necessitates the creation of a new TaxGroup, to separate 'School Supplies' from all the other normally taxed items
During the tax holiday the Tax configuration tables will contain:

Event
ID
Event Typ Sched. Start
Actual
Start
Sched. End
Actual
End
Event
ID
Tax
Gp.
ID
Athy.
ID
Rte.
Seq.
No
Type
Code
Min.
Tax
Amt.
Max.
Tax
Amt.
Amount Percent
1 Data Maint 15-Aug-2002 NULL 30-Aug-2002 NULL 1 Tax Maint 1 Rate 1 3 City 0 percent NULL NULL NULL 0.00%
2 Data Maint 15-Aug-2002 NULL 30-Aug-2002 NULL 2 Tax Maint 2 Rate 2 3 County 0 percent NULL NULL NULL 0.00%
3 Data Maint 15-Aug-2002 NULL 30-Aug-2002 NULL 3 Tax Maint 3 Rate 3 3 State 0 percent NULL NULL NULL 0.00%
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
3 School Supplies
Multiple Jurisdictions - United States (w/o Shipping)
A (ficticious) example including city sales taxes for Austin, Dallas & Houston in addition to a Texas state sales tax; along with Philadelphia & Pittsburg city sales taxes coupled to a Pennsylvania
state sales tax.
Texas:5.75%, Calculate on undiscounted prices.
Austin:2.50%
Dallas:3.00%, Calculate & Round at unit item level.
Houston:3.75%
Pennsylvania:7.25% (Compounding on City taxes)
Pittsburgh:2.50%
Philadelphia:3.00%
All stores are placed into a RETAILSTOREGROUP which denotes the smallest tax jursidiction that the store is part of. RETAILSTOREGROUPITEM is then used to allow each TaxAuthority to rule on
which items are taxable, and which are non-taxable independently of every other TaxAuthority.
Entity TAXAUTHORITYRULE provides the list of TAXAUTHORITYs that each store in the RETAILSTOREGROUP is required to collect sales-tax for.
RetailStoreGroupItem
Item ID Store Gp. ID Tax Gp. ID
100 Austin 0
101 Austin 0
102 Austin 0
RetailStoreGroupItem (Ctd.)
100 Dallas 1
101 Dallas 1
102 Dallas 1
100 Houston 0
101 Houston 1
102 Houston 0
100 Pittsburg 1
101 Pittsburg 0
102 Pittsburg 1
100 Philadelphia 0
101 Philadelphia 0
102 Philadelphia 1
TaxAuthorityRule
Store Gp. ID Athy. ID
Houston HOU
Houston TX
Dallas DFW
Dallas TX
Pittsburgh PBG
Pittsburgh PA
Philadelphia PHL
Philadelphia PA
Entities TAXABLEGROUP, TAXGROUPRULE & TAXRATERULE record the taxation rules & rates that must be collected on behalf of each TAXAUTHORITY
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
1 TX 0 false trx pickOne 1 TX 1 percent NULL NULL NULL 0.00%
1 AUS 0 false trx pickOne 1 AUS 1 percent NULL NULL NULL 0.00%
1 DFW 0 false trx pickOne 1 DFW 1 percent NULL NULL NULL 0.00%
1 HOU 0 false trx pickOne 1 HOU 1 percent NULL NULL NULL 0.00%
1 PA 2 false trx pickOne 1 PA 1 percent NULL NULL NULL 0.00%
1 PBG 1 false trx pickOne 1 PBG 1 percent NULL NULL NULL 0.00%
1 PHL 1 false trx pickOne 1 PHL 1 percent NULL NULL NULL 0.00%
2 Taxed
2 DFW 0 false unit pickOne 2 DFW 1 percent NULL NULL NULL 3.00%
Exception: If Texas was to rate 'School Supplies' as non-taxable, but 'Austin' was to rate them as taxable then a third TAXGROUP is created to cover 'School Supplies' with appropriate tax rates.
Pennsylvannia doesn't use the 'School Supplies' tax group, so there are no matching TAXGROUPRULE & TAXRATERULE rows for the 'School Supplies' tax group for the Pennsylvania based
TAXAUTHORITYs.

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
3 School Supplies
Multiple Jurisdictions - United States (w Shipping)
We complete the previous example by adding the following rules:
When goods are purchased anywhere in the United States and shipped to Pennsylvannia, then all Pennsylvannia City & State taxes must be collected by the retailer.
When goods are purchased anywhere in the United States and shipped to Texas, then no taxes are collected by the retailer.
Entities RETAILSTOREGROUPITEM & TAXAUTHORITYRULE remain unchanged. A new entity SHIPPINGTAXAUTHORITYRULE; provides a list of applicable TAXAUTHORITIES when sending
merchandise from a store in a particular RETAILSTOREGROUP (eg: All stores in the United States) to a particular TAXJURISDICTION (which is derived from the shipping address).
The new entity SHIPPINGTAXAUTHORITYRULE in conjunction with a RETAILSTOREGROUP record denoting all stores in the United States removes the need for a cartesian product of all 3400
(or so) U-S based TAXAUTHORITYs. There is a trade-off between the complexity of walking the RETAILSTOREGROUP hierarchy and the size of the 3400 x 3400 TAXAUTHORITY cartesian
product.
RetailStoreGroupItem
100 Austin 0
101 Austin 0
102 Austin 0
100 Dallas 1
101 Dallas 1
102 Dallas 1
100 Houston 0
101 Houston 1
102 Houston 0
100 Pittsburg 1
101 Pittsburg 0
102 Pittsburg 1
100 Philadelphia 0
101 Philadelphia 0
102 Philadelphia 1
TaxAuthorityRule
Houston HOU
Houston TX
Dallas DFW
Dallas TX
Pittsburgh PBG
Pittsburgh PA
Philadelphia PHL
Philadelphia PA
ShippingTaxAuthorityRule
Store Gp. ID Tax Jurisdiction Athy. ID
United States Pennsylvannia PA
United States Pittsburgh PBG
United States Philadelphia PHL

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
2 Taxed
Multiple Jurisdictions - Canada
There are 3 types of Canadian sales tax:
GST: (0 or 7%) Federal Goods & Services Tax. Remitted to the federal Government.
PST: (0 to 10%) Provincial Sales Tax. Which is compounded upon GST and remitted to the provincial government where the sale is made.
HST: (0 or 15%) combined federal/provincial Harmonized Sales Tax. Represents GST of 7% + PST of 8% and is remitted to the federal government
If retailer and customer are in the same province then the applicable sales taxes are either GST + PST or HST. but never both. If the customer is out of the country then all taxes GST/PST/HST are
zero. If the retailer and customer are in different provinces then it gets rather complicated.
The detail of this real-world example was gleaned from the web-site of the Canda Customs & Revenue Agency at http://www.ccra-adrc.gc.ca/tax/business/gstguides/rc4045/4045-e.html
Each of the following 12 tables shows which taxes are applicable in each province
British Columbia
Cust. Prov. Taxes Tax Rate
Not Canada No Tax 0.00%
AB GST 7.00%
BC GST + PST 7.00% + 7.50%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Alberta
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Saskatchewan
AB GST 7.00%
BC GST 7.00%
SK GST + PST 7.00% + 6.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Manitoba
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST + PST 7.00% + 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Ontario
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST + PST 7.00% + 8.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Quebec
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST + PST 7.00% + 8.03%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Prince Edward Island
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST + PST 7.00% + 10.70%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
New Brunswick
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Nova Scotia
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
New Foundland / Labrador
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Yukon
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
NWT / Nunavut
AB GST 7.00%
BC GST 7.00%
SK GST 7.00%
MB GST 7.00%
ON GST 7.00%
QC GST 7.00%
PE GST 7.00%
NB HST 15.00%
NS HST 15.00%
NF HST 15.00%
YT GST 7.00%
NT GST 7.00%
Entity TAXAUTHORITYRULE resolves RETAILSTOREGROUP into a list of applicable TAXAUTHORITYs, and is used when the customer and store making the sale are both in the same province.
Note: the RETAILSTOREGROUP used by this rule is a lower-level group which groups stores by province.
Entity SHIPPINGTAXAUTHORITYRULE is used to resolve the sending RETAILSTOREGROUP and the customer's shipping address into a list of applicable TAXAUTHORITYs, and is used when the
customer and store making the sale are not in the same province.
Note: the RETAILSTOREGROUP used by this rule is a higher-level group which groups stores by country, and in this example includes only those stores in Canada.
Remember: GST & HST are applicable for all sales made in Canada; but PST is only applicable when the goods are not being shipped to another province.
Note: because HST must be split by each participating province when remitting the HST monies collected to the federal government, each province gains it's own provincial HST
TAXAUTHORITY.
TaxAuthorityRule
Alberta GST
British Columbia GST
British Columbia BC
Saskatchewan GST
Saskatchewan SK
Manitoba GST
Manitoba MB
Ontario GST
Ontario ON
Quebec GST
Quebec QC
Prince Edward Is. GST
Prince Edward Is. PE
New Brunswick HST-NB
Nova Scotia HST-NS
New Foundland HST-NF
Yukatan GST
North West Territory GST
Canada Alberta GST
Canada British Columbia GST
Canada Saskatchewan GST
Canada Manitoba GST
Canada Ontario GST
Canada Quebec GST
Canada Prince Edward Is. GST
Canada New Brunswick HST-NB
Canada Nova Scotia HST-NS
Canada New Foundland HST-NF
Canada Yukatan GST
Canada North West Territory GST
Here are the joined TaxableGroup, GroupRule & RateRule entities denoting the tax group & tax rate rules.

Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
1 GST 1 false trx pickOne 1 GST 1 percent NULL NULL NULL 0.00%
1 AB 2 false trx pickOne 1 AB 1 percent NULL NULL NULL 0.00%
1 BC 2 false trx pickOne 1 BC 1 percent NULL NULL NULL 0.00%
1 SK 2 false trx pickOne 1 SK 1 percent NULL NULL NULL 0.00%
1 MB 2 false trx pickOne 1 MB 1 percent NULL NULL NULL 0.00%
1 ON 2 false trx pickOne 1 ON 1 percent NULL NULL NULL 0.00%
1 QC 2 false trx pickOne 1 QC 1 percent NULL NULL NULL 0.00%
1 PE 2 false trx pickOne 1 PE 1 percent NULL NULL NULL 0.00%
1 HST-NB 1 false trx pickOne 1 HST-NB 1 percent NULL NULL NULL 0.00%
1 HST-NS 1 false trx pickOne 1 HST-NS 1 percent NULL NULL NULL 0.00%
1 HST-NF 1 false trx pickOne 1 HST-NF 1 percent NULL NULL NULL 0.00%
2 Taxed
2 GST 1 false trx pickOne 2 GST 1 percent NULL NULL NULL 7.00
2 HST 1 false trx pickOne 2 HST 1 percent NULL NULL NULL 15.00
2 AB 2 false trx pickOne 2 AB 1 percent NULL NULL NULL 7.00
2 BC 2 false trx pickOne 2 BC 1 percent NULL NULL NULL 7.50
2 SK 2 false trx pickOne 2 SK 1 percent NULL NULL NULL 6.00
2 MB 2 false trx pickOne 2 MB 1 percent NULL NULL NULL 7.00
2 ON 2 false trx pickOne 2 ON 1 percent NULL NULL NULL 8.00
2 QC 2 false trx pickOne 2 QC 1 percent NULL NULL NULL 8.03
2 PE 2 false trx pickOne 2 PE 1 percent NULL NULL NULL 10.70
2 HST-NB 1 false trx pickOne 2 HST-NB 1 percent NULL NULL NULL 15.00
2 HST-NS 1 false trx pickOne 2 HST-NS 1 percent NULL NULL NULL 15.00
2 HST-NF 1 false trx pickOne 2 HST-NF 1 percent NULL NULL NULL 15.00
Multiple Jurisdictions - United States & Canada
Combining the previous two examples into one set of tax-rules for all stores in both Canada & The United States, we get the following:
Pennsylvania taxes are collected when goods are purchased in The United States.
Texas taxes are only collected when goods are purchased in Texas.
Canadian taxes are only collected when goods are purchased in Canada.
TaxAuthorityRule
Alberta GST
British Columbia BC
Saskatchewan GST
Saskatchewan SK
Manitoba GST
Manitoba MB
Ontario GST
Ontario ON
Quebec GST
Quebec QC
TaxAuthorityRule (Ctd.)
Nova Scotia HST-NS
Yukatan GST
Houston HOU
Houston TX
Dallas DFW
Dallas TX
Pittsburgh PBG
Pittsburgh PA
Philadelphia PHL
Philadelphia PA
Canada Alberta GST
Canada Manitoba GST
Canada Ontario GST
Canada Quebec GST
Canada Yukatan GST
Here are the joined TaxableGroup, GroupRule & RateRule entities denoting the tax group & tax rate rules for both Canada & The United States
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed

TaxableGroup
(Ctd.)
TaxGroupRule (Ctd.) TaxRateRule (Ctd.)
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
2 Taxed
Multiple Jurisdictions - United States, Canada, New Zealand & Australia
Adding New Zealand & Australia to the previous example shows that tax collection liabilities cross even national borders in the 21
st
century. ie: A retailer based in New Zealand who ships goods
to customers in Australia collects Australian Goods & Services Tax.
TaxAuthorityRule
Alberta GST
British Columbia BC
Saskatchewan GST
Saskatchewan SK
Manitoba GST
Manitoba MB
Ontario GST
Ontario ON
Quebec GST
Quebec QC
TaxAuthorityRule (Ctd.)
Nova Scotia HST-NS
Yukatan GST
Houston HOU
Houston TX
Dallas DFW
Dallas TX
Pittsburgh PBG
Pittsburgh PA
Philadelphia PHL
Philadelphia PA
Australia AU-GST
New Zealand NZ-GST
Canada Alberta GST
Canada Manitoba GST
Canada Ontario GST
Canada Quebec GST
Canada Yukatan GST
New Zealand Australia AU-GST
Australia New Zealand NZ-GST
Here are the joined TaxableGroup, GroupRule & RateRule entities denoting the tax group & tax rate rules for all four countries.
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
1 NonTaxed
1 AU-GST 0 false trx pickOne 1 AU-GST 1 percent NULL NULL NULL 0.00%
1 NZ-GST 0 false trx pickOne 1 NZ-GST 1 percent NULL NULL NULL 0.00%

TaxableGroup
(Ctd.)
TaxGroupRule (Ctd.) TaxRateRule (Ctd.)
Tax Gp.
ID
Name
Tax Gp.
ID
Athy.
ID
Compound Seq.
No.
Tax on Gross
Amount
Calc.
Method
Rate
Usage
Tax Gp.
ID
Athy.
ID
Rte. Seq.
No
Type
Code
Min. Tax
Amt.
Max. Tax
Amt.
Amount Percent
2 Taxed
2 AU-GST 0 false trx pickOne 2 AU-GST 1 percent NULL NULL NULL 10.00%
2 NZ-GST 0 false trx pickOne 2 NZ-GST 1 percent NULL NULL NULL 12.50%

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Sales Tax Worked Examples

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