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As one example, consider digitized that you might sell out of Canadian website, such as e-books, downloadable software, or subscriptions to content. Would likely be be believed to be selling "intangible personal property". Unless your technique are also considered "intellectual property" (such as software or e-books that you simply produced or have obtained the rights for), you will possess to charge G.S.T. Deficit why, according to the Canada Revenue Agency, is that it really COULD provide inside Canada, even whether it isn't.
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In Canada, exports are "zero-rated" sales for T.S.T. purposes. This means that whenever you ship a service to someone outside Canada, you don't charge G.S.T. Yet, you 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, would be to encourage conveying.
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Say you sold a subscription for accessing digitized content (from various sources) within your Canadian web site to a customer in our great country. Since there are no restrictions about where the intangible personal property may be used, along with the property isn't considered intellectual property (nor the provision of a gsa search engine ranker hosting), the American customer is foreclosures G.S.T., even though he never comes to Canada.
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