In Canada, exports are “zero-rated” sales for K.S.T. purposes. This translates that when you ship some thing to someone outside Canada, you don’t charge He.S.T. Yet, you head to claim (or deduct for the 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, might be to encourage transferring.

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