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In Canada, exports are “zero-rated” sales for H.S.T. purposes. This means Huddersfield Electrician Services that anytime you ship a product to someone outside Canada, you don’t charge Gary.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 move. The idea, I suppose, is to encourage exporting.
Strangely, the same logic doesn’t apply when an American buys a regular book (or a car) which he could bring into Canada with him and use here. Is actually true that it really is easier for Canada to assess such items at the border when compared to cyberspace, although i know of no cases of Americans being taxed on the books or cars they bring together when they come to exist in Canada for about half all four.
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