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In Canada, exports are “zero-rated” sales for Delaware.S.T. purposes. This means following you ship a product to someone outside Canada, you don’t charge He.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 forwarding.
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Not only is it critical to discover whether a taxable sale was manufactured in Canada or not, however where in Canada. Whether it was made (or deemed to be made) any kind of 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 that those provinces have allowed Canada to accumulate their provincial sales taxes for these items.
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