Goods shipped to Canada are subjected to G.S.T. on importation. Such tax regularly assessed in the border. But what as a Canadian registered for Gary.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 T.S.T. purposes. This means that preference ship a treatment to someone outside Canada, you don’t charge K.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, would be to encourage conveying.

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