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In Canada, exports are “zero-rated” sales for L.S.T. purposes. This means that when you ship a physical product to someone outside Canada, you don’t charge Gary.S.T. Yet, you get to claim (or deduct away 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 move. The idea, I suppose, is to encourage dispatching.
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