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Goods shipped to Canada are cause to undergo G.S.T. on importation. Such tax is assessed in the border. But what that Canadian registered for He.S.T., selling to a Canadian customer yet your supplier will be a foreign country?

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In Canada, exports are “zero-rated” sales for L.S.T. purposes. This means Airbnb near Disneyland in California right after you ship a product to someone outside Canada, you don’t charge F.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 foreign trade. The idea, I suppose, is to encourage forwarding.

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