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In Canada, exports are “zero-rated” sales for G.S.T. purposes. This demonstrates that when you ship a product to someone outside Canada, you don’t charge Gram.S.T. Yet, you discuss 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 export. The idea, I suppose, is to encourage exporting.
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