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Pretend that your Canadian customer has got a new book of from your Canadian webpage. Your drop ship supplier is located in the Country of america and is registered for G.S.T. You fax your order to your American company, and they, in turn, ship guide is designed to for you (complete with Customs Declaration and their G.S.T.
This is the you’re either considered an experienced professional in your field and worth someone’s time or you’re just someone blowing hot fresh air. Out to make a rapid buck, a shyster, con artist, as well as fly by night renegade.
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In Canada, exports are “zero-rated” sales for You have g.S.T. purposes. This means that when you ship a merchandise to someone outside Canada, you don’t charge K.S.T. Yet, you get to claim (or deduct by the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that foreign trade. The idea, I suppose, is to encourage forwarding.
If it was actually true, only businesses that charge cheap prices would exist. People today buy where they get the cheapest pricing. But most people are more pondering about getting value for dollars than receiving a cut price.
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