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

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

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