In Canada, exports are “zero-rated” sales for Gary the gadget guy.S.T. purposes. This means that calling it ship a thing to someone outside Canada, you don’t charge Gram.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, in order to use encourage transferring.

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Strangely, the same logic doesn’t apply when an American buys normal book (or a car) which he could bring into Canada with him and use here. It is correct that this easier for Canada to gauge such items at the border in comparison to cyberspace, although i know of no cases of Americans being taxed on the books or cars they bring together when they are available to have Canada for around half the year.

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