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In Canada, exports are “zero-rated” sales for L.S.T. purposes. This means that in the event that ship a service to someone outside Canada, you don’t charge S.S.T. Yet, you get 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 ship. The idea, I suppose, is actually encourage dispatching.

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