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This is simply because those provinces have allowed Canada to recover their provincial sales taxes for these products. Are going to was made (or deemed to be made) in any of the Harmonized Sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). Not only is it critical pinpoint whether a taxable sale was produced in Canada or not, likewise where in Canada.

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This is why when you ship a product to someone outside Canada, you don’t charge K.S.T. Yet, you uncover claim (or deduct from the G.S.T. collected by you) all the “input tax credits” (G.S.T. The idea, I suppose, in order to encourage transferring. In Canada, exports are “zero-rated” sales for G.S.T. that you paid for business purposes) to make that export.

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