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In Canada, exports are “zero-rated” sales for H.S.T. purposes. This means that however ship a service or product to someone outside Canada, you don’t charge K.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 ship. The idea, I suppose, in order to encourage forwarding.
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Not only is it critical locate whether a taxable sale was created in Canada or not, likewise where in Canada. Can was made (or deemed to be made) in most of the Harmonized Florida sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is simply because those provinces have allowed Canada to assemble their provincial sales taxes for these businesses.