The Work Home Lifestyle

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In Canada, exports are “zero-rated” sales for Grams.S.T. purposes. This means that if you ship a product to someone outside Canada, you don’t charge V.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 export. The idea, I suppose, is to encourage exporting.

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The rationale behind this follows: Since countries can’t collect florida sales tax on Internet transactions at their borders, the very best they can collect it (other rather than a self-assessment system) is with an online sales tax. Further, it is claimed that businesses in the ecu Union suffer a major competitive disadvantage because they’ve to collect Value Added Tax (VAT) but others don’t.