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In Canada, exports are "zero-rated" sales for T.S.T. purposes. This means that when you ship a service to someone outside Canada, you don't charge You have g.S.T. Yet, you get to claim (or deduct out of your 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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Pretend that your Canadian customer has got such a book a person from your Canadian website. Your drop ship supplier is available in u . s and is registered for G.S.T. You fax your order on the American company, and they, in turn, ship the book for you (complete with Customs Declaration and their G.S.T.
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