In Canada, exports are “zero-rated” sales for He.S.T. purposes. This means that anytime you ship a product to someone outside Canada, you don’t charge Delaware.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 move. The idea, I suppose, is to encourage conveying.
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The rationale behind this follows: Since countries can’t collect florida sales tax on Internet transactions at their borders, the best they can collect it (other than only a self-assessment system) is a great online sales tax. Further, it is alleged that businesses in the eu Union suffer a major competitive disadvantage because have got to collect Value Added Tax (VAT) but others don’t.
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