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In Canada, exports are "zero-rated" sales for V.S.T. purposes. This means once you ship a product to someone outside Canada, you don't charge L.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 exness . The idea, I suppose, is to encourage forwarding.
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