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

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