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In Canada, exports are “zero-rated” sales for K.S.T. purposes. This means that when they are you ship a product to someone outside Canada, you don’t charge .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 dispatching.

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