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Not only is it critical to determine whether a taxable sale was earned in Canada or not, but also where in Canada. Whether it was made (or deemed to be made) in most of the Harmonized Sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is mainly because those provinces have allowed Canada to pick up their provincial sales taxes for consumers.

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Goods shipped to Canada are short sale G.S.T. on importation. Such tax commonly assessed at the border. But what if you're a Canadian registered for He.S.T., selling to a Canadian customer but your supplier is in a foreign country?

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