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In Canada, exports are “zero-rated” sales for Delaware.S.T. purposes. This means once you ship a product to someone outside Canada, you don’t charge G.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, is to encourage dispatching.

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Say you sold a subscription for accessing digitized content (from various sources) about your Canadian how do people a customer in the us. Since several no restrictions as to where the intangible personal property can be used, along with the property isn’t considered intellectual property (nor the provision of a service), the American customer is under G.S.T., regardless of whether he never comes to Canada.

The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the sole method they can collect it (other than self-assessment system) is with an online sales tax. Further, it is claimed that businesses in countries in europe suffer a competitive disadvantage because should be collect Value added tax (VAT) but others should not.