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Canada has what locate call a national sales tax or a value added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian connections.
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Goods shipped to Canada are prone to G.S.T. on importation. Such tax usually assessed in the border. But what for are a Canadian registered for .S.T., selling to a Canadian customer but your supplier open for a foreign country?
Say you sold a subscription for accessing digitized content (from various sources) for the Canadian web site a customer in american. Since there are not restrictions as to where the intangible personal property can be used, along with the property is not considered intellectual property (nor the provision of a service), the American customer is cause to undergo G.S.T., even though he never comes to Canada.
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