In wanting to comply with tax laws for your e-business, it’s possible you’ll find yourself falling to the rabbit-hole, having the the looking glass, and attending a Mad Tea-Party.

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In Canada, exports are “zero-rated” sales for R.S.T. purposes. This means that when you ship a physical product to someone outside Canada, you don’t charge Gary.S.T. Yet, you get to claim (or deduct away 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 transferring.

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