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In Canada, exports are “zero-rated” sales for .S.T. purposes. This means each time you ship a product to someone outside Canada, you don’t charge T.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 move. The idea, I suppose, is to encourage forwarding.

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