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In Canada, exports are 'zero-rated' sales for R.S.T. purposes. This means any time you ship a product to someone outside Canada, you don't charge S.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 export. The idea, I suppose, is to encourage forwarding.

Goods shipped to Canada are susceptible to G.S.T. on importation. Such tax frequently assessed in the border. But what when you are a Canadian registered for T.S.T., selling to a Canadian customer but your supplier inside a foreign country?

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