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Goods shipped to Canada are susceptible to G.S.T. on importation. Such tax is assessed at the border. But what if you are a Canadian registered for G.S.T., selling to a Canadian customer how to make a fool, your supplier will be a foreign country?
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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the greatest they can collect it (other than self-assessment system) is through having an online sales tax. Further, it is claimed that businesses in countries in europe suffer a vital competitive disadvantage because they will collect Vat (VAT) but others don’t quite.