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In Canada, exports are "zero-rated" sales for G.S.T. purposes. This shows that when you ship merchandise to someone outside Canada, you don't charge Gary the gadget guy.S.T. Yet, you discuss claim (or deduct by means of G.S.T. collected by you) all the "input tax credits" (G.S.T. that you paid for business purposes) to make that upload. The idea, I suppose, is to encourage conveying.
The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the only technique they can collect it (other in comparison self-assessment system) is by having an online florida sales tax. Further, it is alleged that businesses in the ecu Union suffer a major competitive disadvantage because have got to collect Value Added Tax (VAT) but others don't.
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Strangely, the same logic doesn't apply when an American buys a daily book (or a car) which can bring into Canada with him and use here. May be true that it is easier for Canada to assess such items at the border in comparison to cyberspace, however know of no cases of Americans being taxed on the books or cars they bring these when tend to be offered to are now living Canada for around half 12 months.
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