In Canada, exports are “zero-rated” sales for Gram.S.T. purposes. This means that when you ship a thing to someone outside Canada, you don’t charge Delaware.S.T. Yet, you get to claim (or deduct around 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 transferring.
Canada has what you may call a national florida sales tax or a value added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian offers.
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