5 Steps That Will Help You Fail-Proof And Grow Your Service Business

Canada has zero-rated exports for G.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge G.S.T. You have the option to claim or deduct G.S.T. You can claim (or deduct from the 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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Not only does it matter if the taxable sale was done in Canada, but it is also important to determine where it was done.If the sale was made (or deemed made) in any Harmonized Sales Tax (H.S.T.),In the three provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador, a higher rate of thirteen percent H.S.T. applies.The rate is effective as of January 1, 2008. learing from home This is because these provinces have given Canada permission to collect their provincial sale taxes.

Strangely, however, the same logic does not apply to American who buys a book (or a vehicle) that he could bring into Canada and use there. Although it is true that Canada can assess such items more easily in cyberspace than at the border, I have not heard of any cases where Americans were taxed on books or cars brought with them to Canada.

Canada has what you might refer to as a national tax on sales or a value added tax. This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian transactions.

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