November 23, 2021 at 8:31 pm #30994danielpatton65Participant
The rationale behind this follows: Since countries can’t collect florida sales tax on Internet transactions at their borders, the only way they can collect it (other typical self-assessment system) is by having an online florida sales tax. Further, it is alleged that businesses in the european Union suffer a major competitive disadvantage because they have to collect Value Added Tax (VAT) but others don’t.
In Canada, exports are “zero-rated” sales for K.S.T. purposes. This means that Dodge City Kansas when you ship a procedure to someone outside Canada, you don’t charge W.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, end up being to encourage exporting.
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