Under the GST system, a freight transportation service is zero-rated when supplied in respect of goods that are transported from a place in Canada to a place outside Canada, provided the value of the consideration for the supply is $5 or more.

Under the QST system, a freight transportation service is deemed to be made outside Québec and is not subject to QST when supplied in respect of property that is transported from a place in Québec to a place outside Québec.