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Not only is it critical discover whether a taxable sale was created in Canada or not, furthermore 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 happens because those provinces have allowed Canada to recover their provincial sales taxes for these businesses.
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In Canada, exports are “zero-rated” sales for K.S.T. purposes. This means that when you ship a unit to someone outside Canada, you don’t charge K.S.T. Yet, you get to claim (or deduct of a 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 transferring.