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In Canada, exports are "zero-rated" sales for Gary.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge G.S.T. Yet, you get declare (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 foreign trade. The idea, I suppose, is to encourage conveying.
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Goods shipped to Canada are susceptible to G.S.T. on importation. Such tax is often assessed at the border. But what the whole day Canadian registered for Grams.S.T., selling to a Canadian customer nonetheless supplier is located in a foreign country?
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