In Canada, exports are «zero-rated» sales for G.S.T. purposes. This is why when you ship some thing to someone outside Canada, you don’t charge Gary the gadget guy.S.T. Yet, you will claim (or deduct about 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 encourage forwarding.
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