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In Canada, exports are “zero-rated” sales for K.S.T. purposes. This means that when you ship a system to someone outside Canada, you don’t charge L.S.T. Yet, you get to claim (or deduct through your G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that export. The idea, I suppose, is to encourage exporting.
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