Notes

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Pretend that the Canadian customer has bought a book of from your Canadian blog. Your drop ship supplier is based in the National and is registered for G.S.T. You fax your order towards American company, and they, in turn, ship system for you (complete with Customs Declaration and their G.S.T.

In Canada, exports are "zero-rated" sales for D.S.T. purposes. This means when you ship a creation to someone outside Canada, you don't charge .S.T. Yet, you come to claim (or deduct throughout the G.S.T. collected by you) all the "input tax credits" (G.S.T. that you paid for business purposes) to make that upload. The idea, I suppose, is to encourage exporting.

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