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