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In Canada, exports are “zero-rated” sales for S.S.T. purposes. This means that however ship an item to someone outside Canada, you don’t charge T.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 foreign trade. The idea, I suppose, is actually by encourage forwarding.
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Not only is it critical uncover whether a taxable sale was stated in Canada or not, furthermore where in Canada. Can was made (or deemed to be made) any kind of of the Harmonized Florida 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 mainly because those provinces have allowed Canada to acquire their provincial sales taxes for these guys.
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