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In Canada, exports are “zero-rated” sales for S.S.T. purposes. This means once you ship a product to someone outside Canada, you don’t charge G.S.T. Yet, watchonworld 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 move. The idea, I suppose, is to encourage exporting.

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