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In Canada, exports are “zero-rated” sales for .S.T. purposes. This means that baby announcement onesie a few ship a service to someone outside Canada, you don’t charge He.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 foreign trade. The idea, I suppose, usually encourage exporting.

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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best they can collect it (other when compared with a self-assessment system) is with an online florida sales tax. Further, it is alleged that businesses in the ecu Union suffer a major competitive disadvantage because they’ve to collect Value Added Tax (VAT) but others don’t.

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