In trying to comply with tax laws for your e-business, you might find yourself falling to the rabbit-hole, going while using looking glass, go to a Mad Tea-Party.

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In Canada, exports are “zero-rated” sales for Delaware.S.T. purposes. This means that when you ship something to someone outside Canada, you don’t charge F.S.T. Yet, you get to claim (or deduct about 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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