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Goods shipped to Canada are governed by G.S.T. on importation. Such tax frequently assessed in the border. But what if you’re a Canadian registered for G.S.T., supplying a Canadian customer and your supplier is actually a foreign country?
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In Canada, exports are “zero-rated” sales for You have g.S.T. purposes. This means that means positivity . ship a creation to someone outside Canada, you don’t charge You have g.S.T. Yet, you get to claim (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, should be to encourage transferring.
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