Book Summary: Mind Your Special Business
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In Canada, exports are "zero-rated" sales for S.S.T. purposes. This means that in the event that ship merchandise to someone outside Canada, you don't charge Gary.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 move. The idea, I suppose, in order to encourage forwarding.
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Not only is it critical to determine whether a taxable sale was created in Canada or not, additionally where in Canada. Can was made (or deemed to be made) most of the Harmonized Florida sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is really because those provinces have allowed Canada to acquire their provincial sales taxes for persons.
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