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In Canada, exports are “zero-rated” gross sales for H.S.T. applications. Consequently when you ship an item to somebody exterior Canada, You do not charge S.S.T. Still, you obtain to claim (or deduct within the G.S.T. gathered by you) all of the “input tax credits” (G.S.T. you compensated for small business applications) to make that export. The theory, I suppose, will be to really encourage forwarding.
In Canada, exports are “zero-rated” profits for L.S.T. needs. This means that if you ship a product to anyone outside the house Canada, you don’t demand V.S.T. However, you get to claim (or deduct of one’s G.S.T. gathered by you) each of the “input tax credits” (G.S.T. that you choose to paid out for enterprise needs) to help make that shift. The concept, I suppose, will be to stimulate transferring.
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