In Canada, exports are “zero-rated” sales for S.S.T. purposes. This means that when you ship an item to someone outside Canada, you don’t charge You have g.S.T. Yet, you get to claim (or deduct from 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 to encourage conveying.
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Not only is it critical uncover whether a taxable sale was stated in Canada or not, but also where in Canada. This was made (or deemed to be made) most of the Harmonized 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 really because those provinces have allowed Canada to build up their provincial sales taxes for all of them.
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