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In Canada, exports are “zero-rated” sales for Grams.S.T. purposes. This means that when you ship a product to someone outside Canada, you don’t charge .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 upload. The idea, I suppose, is to encourage conveying.

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Say you sold a subscription for accessing digitized content (from various sources) on your Canadian a website to a customer in usa. Since there aren’t any different than restrictions finest coaching on where the intangible personal property always be used, as well as the property isn’t considered intellectual property (nor the provision of a service), the American customer is susceptible to G.S.T., regardless of whether he never comes to Canada.

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The rationale behind this follows: Since countries can’t collect florida sales tax on Internet transactions at their borders, the sole method they can collect it (other than a self-assessment system) is through having an online florida sales tax. Further, it is claimed that companies in the european union suffer a true competitive disadvantage because they will need to collect Value added tax (VAT) but others need not.