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

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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the sole method they can collect it (other than only a self-assessment system) is a good online sales tax. Further, can claimed that businesses in the ecu Union suffer a major competitive disadvantage because they’ve got to collect Value Added Tax (VAT) but others don’t.