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Not only is it critical locate whether a taxable sale was created in Canada or not, in addition where in Canada. Whether it was made (or deemed to be made) in most of the Harmonized 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 simply because those provinces have allowed Canada to acquire their provincial sales taxes for the group.

In Canada, exports are "zero-rated" sales for K.S.T. purposes. This means following you ship a product to someone outside Canada, you don't charge W.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 ship. The idea, I suppose, is to encourage transferring.

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