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In Canada, exports are “zero-rated” sales for K.S.T. purposes. This means that when you ship products to someone outside Canada, you don’t charge Gram.S.T. Yet, you get to claim (or deduct coming 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 transferring.
Perhaps cannot afford goods right at the moment. Or perhaps there are other, albeit less effective options, might possibly meet their immediate needs better.
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