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In Canada, exports are “zero-rated” sales for Gary.S.T. purposes. This means that when ship a creation to someone outside Canada, you don’t charge R.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 export. The idea, I suppose, would be to encourage transferring.

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Since they paid the G.S.T., you will not think you would have to charge it again, a person? “Wrong!”, smiles the Cheshire dog. Since you are a registrant situated Canada, you ought to charge and remit the G.S.T.

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Canada has what by yourself call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian exchanges.

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