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Beck Hendriksen posted an update 2 years, 11 months ago
In trying to comply with tax laws for your e-business, you could find yourself falling along the rabbit-hole, going from looking glass, go to a Mad Tea-Party.
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In Canada, exports are “zero-rated” sales for Gary the gadget guy.S.T. purposes. This means that when you ship a supplement to someone outside Canada, you don’t charge Gram.S.T. Yet, you get to claim (or deduct by the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that move. The idea, I suppose, is to encourage exporting.
Strangely, your logic doesn’t apply when an American buys each day book (or a car) which might bring into Canada with him and employ here. The fact remains that it is easier for Canada to gauge such items at the border compared with cyberspace, nonetheless know of no cases of Americans being taxed on the books or cars they bring with them when they arrive to remain in Canada for roughly half the year just passed.
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Tip: Discover narrowly defined niche markets where your merchandise solves an exceptional need of this customers. Focus your marketing on them instead of trying to reach a broadly defined general market. You’ll generate more sales and have a better return that are on your advertising expenses.
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