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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best way they can collect it (other rather than a self-assessment system) is through online sales tax. Further, it is claimed that businesses in the ecu Union suffer a major competitive disadvantage because they’ve to collect Value Added Tax (VAT) but others don’t.
In Canada, exports are “zero-rated” sales for .S.T. purposes. This means following 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 ship. The idea, I suppose, is to encourage forwarding.
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Since they paid the G.S.T., make use of think would certainly think have to charge it again, a person? “Wrong!”, smiles the Cheshire cat. Since you are a registrant kept in Canada, an individual might be required to charge and remit the G.S.T.
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