Need An Offshore Sales Office Within A Tax Free Environment

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Pretend that the Canadian customer has obtained a book of from your Canadian website page. Your drop ship supplier located in the particular and is registered for G.S.T. You fax your order on the American company, and they, in turn, ship produced for you (complete with Customs Declaration and their G.S.T.
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In https://numberfields.asu.edu/NumberFields/show_user.php?userid=4054903 , exports are "zero-rated" sales for G.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge R.S.T. Yet, you get to claim (or deduct out of your G.S.T. collected by you) all the "input tax credits" (G.S.T. that you paid for business purposes) to make that export. The idea, I suppose, is to encourage exporting.