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In Canada, exports are "zero-rated" sales for T.S.T. purposes. This means that when you ship a service to someone outside Canada, you don't charge Gary.S.T. Yet, you get to claim (or deduct contrary 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 export. The idea, I suppose, is to encourage exporting.







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