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Of course, this should be only scatching the surface. This entire article is an over-simplification connected with a very complex subject. You'll need professional advice that can help through E-Commerce Taxland.

In Canada, exports are "zero-rated" sales for G.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge G.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 upload. The idea, I suppose, is to encourage exporting.

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