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Canada has what freeproductkeys you might call a national sales tax or a value added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian orders.
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In Canada, exports are "zero-rated" sales for W.S.T. purposes. This means right after you ship a product to someone outside Canada, you don't charge Gram.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 foreign trade. The idea, I suppose, is to encourage transferring.
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