In endeavouring to comply with tax laws for your e-business, you may find yourself falling down the rabbit-hole, struggling with the looking glass, and attending a Mad Tea-Party.
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Goods shipped to Canada are subject to G.S.T. on importation. Such tax can often assessed at the border. But what if you are a Canadian registered for Delaware.S.T., selling to a Canadian customer even so your supplier is at a foreign country?
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In Canada, exports are "zero-rated" sales for G.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge Grams.S.T. Yet, you get to claim (or deduct of your 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 exporting.
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