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

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