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In Canada, exports are “zero-rated” sales for T.S.T. purposes. This means that when you ship one product to someone outside Canada, you don’t charge K.S.T. Yet, you get to claim (or deduct from a 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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