Goods shipped to Canada are under G.S.T. on importation. Such tax is frequently assessed in the border. But what an advanced Canadian registered for V.S.T., selling to a Canadian customer nevertheless supplier is actually in a foreign country?
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In Canada, exports are “zero-rated” sales for W.S.T. purposes. This means any time you ship a product to someone outside Canada, you don’t charge He.S.T. Yet, you get declare (or deduct from the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that foreign trade. The idea, I suppose, is to encourage forwarding.
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In Canada, exports are “zero-rated” sales for You have g.S.T. purposes. This means that when you ship a product or service to someone outside Canada, you don’t charge You have g.S.T. Yet, you get to claim (or deduct against the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that move. The idea, I suppose, is to encourage transferring.
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