Does Magento Charge Tax on Shipping?

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Does Magento charge tax on shipping?

Only if you are registered to remit those taxes to the appropriate government. For example, if you are shipping from Canada and are registered to collect GST and PST, you charge every Canadian customer GST (which is a federal tax) but only people in your own province PST (or HST). And then you send the money to the appropriate government. And t give you a small rebate for your efforts. You do NOT charge taxes to customers in jurisdictions (like say, Australia or USA) who would not normally be paying Canadian taxes. And, you don’t have to make the taxes a line item. Most governments don’t really care if you charge the customer as long as you hand them over. If you are not sure, phone the office of your state/provincial and your federal representative. You don’t need the representative, someone in her office probably knows all about collecting and paying taxes by small businesses.

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This is all an unfortunate consequence of a policy that may not have been set up (or was poorly thought out) to begin with. I know that a couple major players have been in discussions to change it back, but have not yet made a final decision, and some believe a change would be a significant threat to the company. One issue that is very salient, and yet remains unresolved, is what can actually happen with a negative feedback system? Should a negative reviewer earn a bonus for rating a seller negatively? Or should negative feedback come with the standard 5% to 10% rating system (which can affect the rating score, as we saw at eBay)? What would be worse: A negative reviewer is granted a bonus for rating a buyer negatively or the buyer is given a 1% rating? It's possible for there to be a 1-to-5% discrepancy between.