In Canada, exports are “zero-rated” sales for D.S.T. purposes. This means right after you ship a product to someone outside Canada, you don’t charge T.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 transferring.

Strangely, exactly logic doesn’t apply when an American buys normal book (or a car) which might bring into Canada with him and use here. Can true not wearing running shoes is easier for Canada to assess such items at the border as compared to cyberspace, nonetheless know of no cases of Americans being taxed on the books or cars they bring these when these are to live Canada for about half 2011.

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