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**ExelePlavisseu** · 04-08-2010, 05:21 AM

I should have said exporter. 'The exporter would get a refund...'

You do not need to be a manufacturer to claim refunds on inputs. Pretty well all businesses are part of the GST system. Importers/exporters would collect GST on imports that are sold on into Canada and claim refunds on products purchased domestically and exported. The difference between GST collected on sales and GST paid on inputs is paid to or refunded from the feds.

This is where Ben is mistaken. The GST has zero effect on businesses in the chain of transactions from originators to consumers. Anything paid is deducted from what is collected to determine what is remitted, and the business will get a refund if they have significant non-taxable sales.

04-08-2010, 05:21 AM	#34
ExelePlavisseu Join Date Oct 2005 Posts 528 Senior Member	I should have said exporter. 'The exporter would get a refund...' You do not need to be a manufacturer to claim refunds on inputs. Pretty well all businesses are part of the GST system. Importers/exporters would collect GST on imports that are sold on into Canada and claim refunds on products purchased domestically and exported. The difference between GST collected on sales and GST paid on inputs is paid to or refunded from the feds. This is where Ben is mistaken. The GST has zero effect on businesses in the chain of transactions from originators to consumers. Anything paid is deducted from what is collected to determine what is remitted, and the business will get a refund if they have significant non-taxable sales.
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