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Goods shipped to Canada are depending upon G.S.T. on importation. Such tax is frequently assessed in the border. But what if you are a Canadian registered for L.S.T., selling to a Canadian customer however your supplier is actually a foreign country?

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In Canada, exports are “zero-rated” sales for W.S.T. purposes. This means that when you ship a physical product to someone outside Canada, you don’t charge R.S.T. Yet, you get to claim (or deduct inside 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, is to encourage exporting.

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