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In Canada, exports are “zero-rated” sales for R.S.T. purposes. This means that when you ship a merchandise to someone outside Canada, you don’t charge K.S.T.Yet, you get to claim (or deduct to 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. Theidea, I suppose, is to encourage conveying.
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