In Canada, exports are “zero-rated” sales for G.S.T. purposes. This means that any time you ship a product to someone outside Canada, you don’t charge He.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 foreign trade. The idea, I suppose, is to encourage forwarding.
Since they paid the G.S.T., would you think you would have to charge it again, a person? “Wrong!”, smiles the Cheshire pussie. Since you are a registrant tucked within Canada, you have got to charge and remit the G.S.T.
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7 Phrases You Can’t Say In Sales
