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