In making an effort to comply with tax laws for your e-business, you may find yourself falling on the rabbit-hole, searching through the looking glass, and attending a Mad Tea-Party.
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In Canada, exports are “zero-rated” sales for H.S.T. purposes. This means when you ship a service or product to someone outside Canada, you don’t charge G.S.T. Yet, you get to claim (or deduct contrary to the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that foreign trade. The idea, I suppose, is actually by encourage transferring.
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