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All about Bookkeeping
Jun 20, 2019 7:11 PM UTC
Question

What is the difference between tax-exempt and zero-rated

Canadian company is paying US vendors - no tax.  Which tax code should be selected, exempt or zero rated?  Or other?

1 reply

Anonymous
Jun 20, 2019 7:15 PM UTC
Generally a Canadian company can use 'zero rated' as the GST code for all its foreign sales and purchases. But if there are foreign sales taxes you need to track then yo will need to create additional tax codes for foreign tax
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