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As one example, consider digitized goods that you might sell within the Canadian website, such as e-books, Mosquito Light Bulb downloadable software, or subscriptions to content. You'd be considered staying selling "intangible personal property". Unless your product is electricity "intellectual property" (such as software or e-books that produced or have obtained the rights for), all of it . to charge G.S.T. Leasing why, in line with the Canada Revenue Agency, is that it COULD be employed inside Canada, even the hho booster isn't.

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In Canada, exports are "zero-rated" sales for K.S.T. purposes. This means that when you ship something to someone outside Canada, you don't charge You have g.S.T. Yet, you get to claim (or deduct of the 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.

Say you sold a membership for accessing digitized content (from various sources) within your Canadian website to a customer in u . s. Since there are no restrictions in terms of where the intangible personal property in a position to used, and also the property is not considered intellectual property (nor the provision of a service), the American customer is prone to G.S.T., regardless of whether he never comes to Canada.

Strangely, sneakers logic doesn't apply when an American buys any book (or a car) which he could bring into Canada with him and use here. Several benefits, including that it is easier for Canada to assess such items at the border compared to cyberspace, but i know of no cases of Americans being taxed on the books or cars they bring with them when tend to be offered to residence Canada for an estimated half the entire year.

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