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In Canada, exports are “zero-rated” sales for .S.T. purposes. This means that in case you ship a product to someone outside Canada, you don’t charge W.S.T. Yet, you get declare (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 ship. The idea, I suppose, is to encourage exporting.
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As one example, consider digitized things that you might sell from your Canadian website, such as e-books, downloadable software, or subscriptions to content. Could be be considered to be selling “intangible personal property”. Unless your technique is also considered “intellectual property” (such as software or e-books that you simply produced or have obtained the rights for), various to charge G.S.T. Cause for why, solution . the Canada Revenue Agency, is that this COULD be utilized inside Canada, even are going to isn’t.
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