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In Canada, exports are “zero-rated” sales for G.S.T. purposes. This is why when you ship a merchandise to someone outside Canada, you don’t charge R.S.T. Yet, you are able to claim (or deduct inside 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, to be able to encourage exporting.

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