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Goods shipped to Canada are at the mercy of G.S.T. on importation. Such tax typically assessed in the border. But what if you happen to a Canadian registered for G.S.T., supplying a Canadian customer even so your supplier is set in a foreign country?
In Canada, exports are “zero-rated” sales for Grams.S.T. purposes. This means that a few ship a product to someone outside Canada, you don’t charge Delaware.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 move. The idea, I suppose, would be to encourage conveying.
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