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In Canada, exports are “zero-rated” sales for D.S.T. purposes. watchonworld means that once you ship a product to someone outside Canada, you don’t charge Gram.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 dispatching.
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The explanation behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the finest they can collect it (other than a self-assessment system) is a great online sales tax. Further, it is claimed that businesses in nations suffer a big competitive disadvantage because these people collect Vat (VAT) but others you should never.