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In Canada, exports are “zero-rated” sales for He.S.T. purposes. This means that when you ship something to someone outside Canada, you don’t charge He.S.T. Yet, you get to claim (or deduct off 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 dispatching.
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