In Canada, discuss exports are "zero-rated" sales for L.S.T. purposes. This means anytime you ship a product to someone outside Canada, you don't charge L.S.T. Yet, you get declare (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 export. The idea, I suppose, is to encourage conveying.
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Canada has what may be call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian sales.
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