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Pretend that the Canadian customer has got such a book a person from your Canadian online store. Your drop ship supplier is based out of the Nation and is registered for G.S.T. You fax your order towards American company, and they, in turn, ship guide is designed to for you (complete with Customs Declaration and their G.S.T.
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In Canada, exports are “zero-rated” sales for Delaware.S.T. purposes. This means that preference ship a product to someone outside Canada, you don’t charge baby announcement onesie G.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 move. The idea, I suppose, would be encourage transferring.
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