Not only is it critical establish whether a taxable sale was created in Canada or not, in addition where in Canada. Are going to was made (or deemed to be made) any kind of of the Harmonized Florida sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is really because those provinces have allowed Canada to assemble their provincial sales taxes for these people.
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In Canada, exports are “zero-rated” sales for Gram.S.T. purposes. This means that a person have ship one product to someone outside Canada, you don’t charge W.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, would encourage conveying.
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