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Pretend your Canadian customer has bought a book of from your Canadian page. Your drop ship supplier is within the United states and is registered for G.S.T. You fax your order towards the American company, and they, in turn, ship guide is designed to for you (complete with Customs Declaration and their G.S.T.
In Canada, exports are "zero-rated" sales for K.S.T. purposes. This means that when you ship something to someone outside Canada, you don't charge G.S.T. Yet, you get to claim (or deduct you can try these out for 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 dispatching.
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Since they paid the G.S.T., they're worth think it seems like have to charge it again, can? "Wrong!", smiles the Cheshire pet cat. Since you are a registrant in Canada, you are required to charge and remit the G.S.T.
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