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In Canada, exports are "zero-rated" sales for T.S.T. purposes. This means that when you're ship a specific thing to someone outside Canada, you don't charge V.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 export. The idea, I suppose, will be encourage forwarding.
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The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the finest they can collect it (other in comparison to self-assessment system) is by having an online florida sales tax. Further, it is claimed that businesses in the eu suffer a main competitive disadvantage because they must collect Vat (VAT) but others don't.
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