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Of course, this should be scatching the surface. This entire article a great over-simplification of an very complex subject. You will need professional advice which enables you to through E-Commerce Taxland.

In Canada, exports are “zero-rated” sales for You have g.S.T. purposes. This means that when you ship some thing to someone outside Canada, you don’t charge G.S.T. Yet, Tela de Proteção get to claim (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, would be to encourage transferring.

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