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Not only is it critical to discover whether a taxable sale was built in Canada or not, furthermore where in Canada. Are going to was made (or deemed to be made) in most of the Harmonized Florida sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is mainly because those provinces have allowed Canada to acquire their provincial sales taxes for the entire group.
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In Canada, exports are “zero-rated” sales for G.S.T. purposes. This means that when you ship something to someone outside Canada, you don’t charge H.S.T. Yet, you get to claim (or deduct for 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 exporting.
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