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Not only is it important to determine whether a taxable sale was made in Canada or not, however likewise where in Canada. If it was made (or deemed to be made) in any 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 uses (as at January 1, 2008). Because those provinces have permitted Canada to collect their provincial sales taxes for them, this is.
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In Canada, exports are “zero-rated” sales for G.S.T. purposes. This implies that when you deliver a product to somebody outside Canada, you do not charge G.S.T. Yet, you get to claim (or subtract from the G.S.T. gathered by you) all the “input tax credits” (G.S.T. that you spent for organization functions) to make that export. The idea, I suppose, is to encourage exporting.
