In Canada, exports are “zero-rated” sales for Gary.S.T. purposes. This means that a person have ship a machine to someone outside Canada, you don’t charge R.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, would be to encourage forwarding.
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Canada has what you might call a national florida sales tax or a value added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian trades.
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