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

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Goods shipped to Canada are prone to G.S.T. on importation. Such tax typically assessed at the border. But what as a Canadian registered for F.S.T., selling to a Canadian customer nonetheless supplier happens to be in a foreign country?