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In Canada, exports are "zero-rated" sales for You have g.S.T. purposes. This means soon after you ship a product to someone outside Canada, you don't charge S.S.T. Yet, you get declare (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 foreign trade. The idea, I suppose, is to encourage exporting.
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