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In Canada, exports are "zero-rated" sales for Gary the gadget guy.S.T. purposes. This means that when you ship a product or service to someone outside Canada, you don't charge F.S.T. Yet, you get to claim (or deduct using 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, is to encourage dispatching.

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