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Not only is it critical discover out whether a taxable sale was manufactured in Canada or not, furthermore where in Canada. Whether it was made (or deemed to be made) 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 assemble their provincial sales taxes for these businesses.
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In Canada, exports are “zero-rated” sales for S.S.T. purposes. This shows that when you ship a machine to someone outside Canada, you don’t charge Gary the gadget guy.S.T. Yet, you get to claim (or deduct on the 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 transferring.
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