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In Canada, exports are “zero-rated” sales for G.S.T. purposes. This means right after you ship a product to someone outside Canada, you don’t charge You have g.S.T. Yet, you get Goiania houses to claim (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 foreign trade. The idea, I suppose, is to encourage exporting.
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