March 9, 2015: My customer ships to the UAE and was wondering if there is any way to avoid paying the HST. (He gets reimbursed, but it’s a pain.) My company is set up in London and I pay the freight. I bring in the material, put it into a container, he takes care of the rest. They also have a company in the UAE. He figures if he runs everything through that company maybe he can avoid HST. Are there any options?

March 9, 2015: My customer ships to the UAE and was wondering if there is any way to avoid paying the HST. (He gets reimbursed, but it’s a pain.) My company is set up in London and I pay the freight. I bring in the material, put it into a container, he takes care of the rest. They also have a company in the UAE. He figures if he runs everything through that company maybe he can avoid HST. Are there any options?

Q. My customer ships to the UAE and was wondering if there is any way to avoid paying the HST. (He gets reimbursed, but it’s a pain.) My company is set up in London and I pay the freight. I bring in the material, put it into a container, he takes care of the rest. They also have a company in the UAE. He figures if he runs everything through that company maybe he can avoid HST. Are there any options?

A. Goods and services that are normally subject to GST or HST may be untaxed when exported from Canada. In this case, they are referred to as “zero-rated” goods or services. The simplest case is when you deliver your products to a purchaser outside Canada. In this situation, they are automatically zero-rated and you do not charge GST/HST to the purchaser. If you deliver them to a purchaser inside Canada, however, they are zero-rated only if certain conditions are met. A full list of these conditions is available on the Canada Revenue Agency (CRA) website or contact the Canada Revenue Agency – Import Export . EDC offers material on tax compliances for exporter and importer. Please click here for more information.

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