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

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In Canada, exports are “zero-rated” sales for .S.T. purposes. This means anytime you ship a product to someone outside Canada, you don’t charge D.S.T. Yet, you get declare (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, is to encourage dispatching.

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