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In Canada, exports are “zero-rated” sales for Gary.S.T. purposes. This means when you ship a specific thing to someone outside Canada, you don’t charge G.S.T. Yet, you start claim (or deduct against 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, might be to encourage dispatching.

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