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In Canada, exports are “zero-rated” sales for Gram.S.T. purposes. This means that when you ship a product to someone outside Canada, you don’t charge G.S.T. Yet, you get to claim (or deduct away 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 move. The idea, I suppose, is to encourage exporting.

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