An individual have ever seen those infomercials about buying houses with “No Money Down?” They are really congratulations. They have all kinds people offering great testimonials about how they have gotten rich, buying rental properties, with absolutely no money out of their pocket. Find this guy, standing on a street corner, talking to someone, and he says, “I own that one,” pointing to a beautiful colonial. “I also own that one next to it, and one two doors down, and I am closing on the one directly across the street from it, next week.” He then assures us that he has purchased 17 homes in the last eight or ten months, with zero money down on the properties. Plus, in many cases he’s also paid no expenses.
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In Canada, exports are “zero-rated” sales for L.S.T. purposes. This means that when you ship a thing to someone outside Canada, you don’t charge .S.T. Yet, you get to claim (or deduct off the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that upload. The idea, I suppose, is to encourage exporting.
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