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Canada has what may well call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian transactions.

In Canada, exports are "zero-rated" sales for H.S.T. purposes. This means that after you ship a product to someone outside Canada, you don't charge Delaware.S.T. Yet, you get to claim (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 foreign trade. The idea, I suppose, is to encourage forwarding.

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