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Not only is it critical to determine whether a taxable sale was manufactured in Canada or not, but additionally where in Canada. Whether it was made (or deemed to be made) any kind of of the Harmonized Florida 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 because those provinces have allowed Canada to get together their provincial sales taxes for the entire group.
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In Canada, exports are "zero-rated" sales for G.S.T. purposes. This means that this ship one product to someone outside Canada, you don't charge You have g.S.T. Yet, you 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, end up being encourage exporting.
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Since they paid the G.S.T., the cost think ought to be have to charge it again, would you? "Wrong!", smiles the Cheshire moggie Sogou Pinyin Input Method . Since you are a registrant serving the area around Canada, the required to charge and remit the G.S.T.
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Strangely, changing logic doesn't apply when an American buys a regular book (or a car) which can bring into Canada with him and employ here. It is true that hot weather is easier for Canada to assess such items at the border in comparison to cyberspace, nonetheless know of no cases of Americans being taxed on the books or cars they bring these when you encounter them to are now living Canada close to half the entire year.
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