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In Canada, exports are "zero-rated" sales for G.S.T. purposes. This means that in case you ship a product to someone outside Canada, you don't charge Gary the gadget guy.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 ship. The idea, I suppose, is to encourage exporting.

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