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G.S.T. applies to all goods shipped to Canada Importation. This tax is often assessed at borders. But what if you are Canadian and sell to a Canadian buyer but your supplier is abroad?
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Exports to Canada are “zero-rated” sales in Canada for G.S.T. purposes. This means that if you ship a product outside Canada, you don?t have to charge G.S.T. You can claim the G.S.T. or deduct it from your invoice. All “input taxes credits” (G.S.T. to be used for business purposes. I believe the idea is to encourage exporting.
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Canada has zero-rated exports for G.S.T. purposes. This means that when you ship a product to someone outside Canada, you don’t charge G.S.T. Yet, you have the right to claim (or deduct) G.S.T. All the “input tax credit” (G.S.T.) that you have received are yours to claim. that you paid for business purposes) to make that export. I believe the idea is to encourage exporting.