Exported goods

Goods (other than excisable goods such as beer and tobacco) that are ordinarily GST/HST taxable supplies may be zero-rated if they are exported from Canada. This means that you do not charge GST/HST on taxable sales if you deliver the goods or make them available to a purchaser outside Canada. Effective July 1, 2006, the GST rate is 6%, and the HST is 14%.

When the purchaser takes delivery of the goods in Canada, you do not charge GST/HST if the following conditions are met:

• the purchaser is not a consumer (a consumer is usually an individual who is buying the goods for his or her personal use);

• the purchaser exports the goods as soon as is reasonable in the circumstance after you deliver them;

• the purchaser does not buy the goods to consume, use, or supply in Canada before exporting them;

• after buying the goods and before exporting them, the purchaser does not further process, transform, or alter the goods in Canada, unless it is reasonably necessary or incidental to transport them;

• you keep satisfactory evidence, for audit purposes, that the purchaser has exported the goods; and

• if the property being exported is electricity, crude oil, natural gas, or any good that can be transported by means of a wire, pipeline, or other conduit, the purchaser is not registered for GST/HST purposes.

If the above conditions for zero-rating are not met, you have to charge and the purchaser has to pay GST/HST on taxable supplies.

A purchaser (other than a consumer) who is registered for GST/HST purposes can apply for authorization to issue an export certificate, which, when provided to the supplier, will cause the goods to be taxed at 0%. For more information on export certificates, see Exports–Tangible Personal Property.

Forms and publications

• General Application for GST/HST Rebates guide (RC4033)
• Form GST189, General Application for Rebate of GST/HST