Not only is it critical establish whether a taxable sale was earned in Canada or not, additionally where in Canada. Can 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 collect their provincial sales taxes for them.
Pretend your Canadian customer has bought a book of from your Canadian web. Your drop ship supplier is located in the Usa and is registered for G.S.T. You fax your order for the American company, and they, in turn, ship system for you (complete with Customs Declaration and their G.S.T.
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