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In Canada, exports are "zero-rated" sales for G.S.T. purposes. This means that when you ship some thing to someone outside Canada, you don't charge T.S.T. Yet, you get to claim (or deduct using 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 forwarding.
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Joann McCall has a unique perspective relating to the problem. As president of McCall Pr in Portand, Oregon, she specializes in generating publicity for novelists. She also has been a radio host, interviewer and newscaster for 18 years and hosts an invisible show with her partner, Debb Janes, called "Janes McCall & Co.," on KKSN radio in Portland.
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The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the sole method they can collect it (other when compared with self-assessment system) is through having an online sales tax. Further, it is alleged that businesses in the european Union suffer a major competitive disadvantage because offer to collect Value Added Tax (VAT) but others don't.
Have you ever seen those infomercials about buying houses with "No Money Back down?" They are nicely done. Have got all types of people offering great testimonials about how they have gotten rich, buying rental properties, with basically no money the their pants pocket. You see this guy, standing on a street corner, contacting someone, and then he says, "I own that one," pointing to a magnificent colonial. "I also own that one next to it, along with the one two doors down, and Soon we will be closing over a one directly across the road from it, next day or two." He then assures us he has purchased 17 homes in the last eight or ten months, with zero money down on the estates. Plus, in many cases he's also paid no closing costs.
