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In Canada, exports are "zero-rated" sales for Gram.S.T. purposes. This means that once you ship some thing to someone outside Canada, you don't charge K.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, is to encourage exporting. Canada has what your preferred retail stores call a national sales tax or a worth added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Ca
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