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In Canada, exports are “zero-rated” sales for Gram.S.T. purposes. This means that an individual have ship a product or service to someone outside Canada, you don’t charge R.S.T. Yet, you get to claim (or deduct from 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, should be to encourage exporting.

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