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In Canada, exports are "zero-rated" sales for Grams.S.T. purposes. This means that when you ship merchandise to someone outside Canada, you don't charge .S.T. Yet, you get to claim (or deduct off 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 foreign trade. The idea, I suppose, is to encourage dispatching.
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