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Goods shipped to Canada are foreclosures G.S.T. on importation. Such tax is assessed in the border. But what if you are a Canadian registered for G.S.T., selling to a Canadian customer the supplier happens to be in a foreign country?
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In Canada, exports are “zero-rated” sales for D.S.T. purposes. This means that when you ship a service to someone outside Canada, you don’t charge Gram.S.T. Yet, you get to claim (or deduct originating from a 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, would be to encourage transferring.
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