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As well, each province and territory has distinctive rules. Ontario charges 8 % retail sales tax on many typical Internet transactions whereas Alberta is free of provincial sales tax.

In Canada, exports are "zero-rated" sales for .S.T. purposes. This means right after you ship a product to someone outside Canada, you don't charge You have g.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 upload. The idea, I suppose, is to encourage forwarding.

Pretend that your Canadian customer has got a book a person from your Canadian online store. Your drop ship supplier is found in the united states and is registered for G.S.T. You fax your order for the American company, and they, in turn, ship plan for you (complete with Customs Declaration and their G.S.T.