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In Canada, exports are "zero-rated" sales for L.S.T. purposes. This means that after you ship a product to someone outside Canada, you don't charge Gram.S.T. Yet, you get declare (or deduct from 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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