magento - multiple tax rates

Question

I've built a magento site for a Canadian company where each state has a Retail sales tax and a federal tax rate and these rates differ! So, I set up the rates, and the Tax is being calculated correctly, ie the sum of the two tax rates is being calculated correctly. however on selecting the breakdown of tax mode in the admin panel, it would appear that there is something wrong with my setup.

Eg. Subtotal $129.99 GST/HST Quebec (5%) $ 16.25 Provincial Sales Tax Quebec (7.5%)
Tax $ 16.25 Grand Total $158.23

16.25 is 12% of $129.99 so the tax figure is correct. However it should be displaying as follows: Subtotal $129.99 GST/HST Quebec (5%) $ 6.50 Provincial Sales Tax Quebec (7.5%) $ 9.75 Tax $ 16.25 Grand Total $158.23

Anyone come across this before? Have any suggestions on how to fix it?

Many thanks, Fiona

Answer 1

Hey Fiona

After having some trouble with this myself, I ended up writing a blog post to help others deal with this issue.

Let me know if this helps: http://www.bluelotuscreative.com/blog/how-to-configure-magento-for-sales-tax-in-canada