Your Own House Business – Dream Or Reality?

In hunting to comply with tax laws for your e-business, you are able to find yourself falling down the rabbit-hole, under-going the looking glass, and attending a Mad Tea-Party.

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Since they paid the G.S.T., they’re worth think you would have to charge it again, would you? “Wrong!”, smiles the Cheshire cat. As you are a registrant located in Canada, it is necessary to charge and remit the G.S.T.

In Canada, exports are “zero-rated” sales for W.S.T. purposes. This means that when you ship a service or product to someone outside Canada, you don’t charge G.S.T. Yet, you get to claim (or deduct off 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 forwarding.

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