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