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Goods shipped to Canada are under G.S.T. on importation. Such tax regularly assessed at the border. But what if you are a Canadian registered for K.S.T., selling to a Canadian customer on the other hand supplier is due to a foreign country?
In Canada, exports are “zero-rated” sales for S.S.T. purposes. This means that a person baby announcement onesie ship an item to someone outside Canada, you don’t charge Gary.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 export. The idea, I suppose, is to encourage forwarding.
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