In Canada, exports are “zero-rated” sales for K.S.T. purposes. This means that when they are you ship a product to someone outside Canada, you don’t charge T.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, is to encourage conveying.

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Of course, this is merely scatching the surface. This entire article is an over-simplification in the place of very complex subject. Also it definitely need professional advice to an individual to through E-Commerce Taxland.

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