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In Canada, exports are “zero-rated” sales for G.S.T. purposes. This means that when you ship an item to someone outside Canada, you don’t charge Gary.S.T. Yet, you get to claim (or deduct of the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that export. The idea, I suppose, is to encourage exporting.

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