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In Canada, exports are "zero-rated" sales for L.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge Gary.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 export. The idea, I suppose, is to encourage dispatching.

Since they paid the G.S.T., you would not think you would have to charge it again, can? "Wrong!", smiles the Cheshire cat. Since you are a registrant found in Canada, you have got to charge and remit the G.S.T.

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