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Your drop ship supplier is present in the United states and is registered for G.S.T. You fax your order to the American company, and they, in turn, ship the book for you (complete with Customs Declaration and their G.S.T. Pretend that your Canadian customer has purchased a book a person from your Canadian internet business.
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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best they can collect it (other in comparison with self-assessment system) is through online sales tax. Further, it is claimed that businesses in the eu suffer a vital competitive disadvantage because weather resistant collect Value added tax (VAT) but others don’t.
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