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In Canada, exports are “zero-rated” sales for S.S.T. purposes. This means that it is far more ship merchandise to someone outside Canada, you don’t charge G.S.T. Yet, you get to claim (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 foreign trade. The idea, I suppose, would be to encourage forwarding.

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