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Goods shipped to Canada are governed by G.S.T. on importation. Such tax commonly assessed at the border. But what if you are a Canadian registered for You have g.S.T., selling to a Canadian customer but your supplier is within a foreign country?
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In Canada, exports are “zero-rated” sales for F.S.T. purposes. This means that when you ship a solution to someone outside Canada, you don’t charge K.S.T. Yet, you get to claim (or deduct belonging to the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that move. The idea, I suppose, is to encourage forwarding.
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