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In Canada, exports are "zero-rated" sales for G.S.T. objectives. This suggests that when you deliver a product to someone outside Canada, you do not charge G.S.T. Yet, you reach case (or subtract from the G.S.T. collected by you) all the "input tax obligation debts" (G.S.T. that you spent for company objectives) to make that export. The concept, I intend, is to encourage exporting.
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Canada has what you could call http://www.travelful.net/location/4569893/united-states/signature-landscape a national sales tax obligation or a value included tax (VAT). This Item and Provider Tax Obligation (G.S.T.) of five percent (as at January 1, 2008) applies to lots of Canadian purchases.
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