How To Secure Your Company With A Pix Firewall
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Pretend that the Canadian customer has obtained a book a person from your Canadian web pages. Your drop ship supplier is centered at the United states and is registered for G.S.T. You fax your order into the American company, and they, in turn, ship system for you (complete with Customs Declaration and their G.S.T.
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In Canada, exports are "zero-rated" sales for Delaware.S.T. purposes. This means that when you ship a physical product to someone outside Canada, you don't charge G.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, for you to encourage dispatching.
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