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The rationale behind this follows: Since countries can't collect florida sales tax on Internet transactions at their borders, the only way they can collect it (other typical self-assessment system) is by having an online sales tax. Further, it is claimed that businesses in the european union suffer significant competitive disadvantage because they have to collect Value added tax (VAT) but others cannot.
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In Canada, exports are "zero-rated" sales for G.S.T. purposes. This means that when you ship a product to someone outside Canada, you don't charge S.S.T. Yet, you get to claim (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 foreign trade. The idea, I suppose, is to encourage conveying.
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