In trying to comply with tax laws for your e-business, you could find yourself falling for the rabbit-hole, going the particular looking glass, and attending a Mad Tea-Party.
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In Canada, exports are “zero-rated” sales for Delaware.S.T. purposes. This ensures that when you ship a procedure to someone outside Canada, you don’t charge K.S.T. Yet, you get to claim (or deduct of a G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that export. The idea, I suppose, is to encourage forwarding.
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