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Goods shipped to Canada are cause to undergo G.S.T. on importation. Such tax typically assessed in the border. But what opt for Canadian registered for G.S.T., selling to a Canadian customer your supplier was in a foreign country?

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In Canada, exports are “zero-rated” sales for He.S.T. purposes. This means that when you ship a product or service to someone outside Canada, you don’t charge .S.T. Yet, you get to claim (or deduct for 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 transferring.

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