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In Canada, exports are 'zero-rated' sales for K.S.T. purposes. This means that anytime you ship a product to someone outside Canada, you don't charge T.S.T. Yet, you get declare (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, is to encourage conveying.

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Strangely, the same logic doesn't apply when an American buys a normal book (or a car) which might bring into Canada with him and use here. The simple truth is that will be easier for Canada to gauge such items at the border compared with cyberspace, on the other hand know of no cases of Americans being taxed on the books or cars they bring these people when they arrive to have a home in Canada roughly half the whole year.

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