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In Canada, exports are “zero-rated” sales for H.S.T. purposes. This means that when you ship a physical product to someone outside Canada, you don’t charge G Exness .S.T. Yet, you get to claim (or deduct with all 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, is to encourage forwarding.

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