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Canada has what you could be call a national florida sales tax or a worth 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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Say you sold a subscription for accessing digitized content (from various sources) that are on your Canadian web site a customer in the united states. Since are generally no restrictions as to where the intangible personal property might be used, and the property isn’t considered intellectual property (nor the provision of a service), the American customer is controlled by G.S.T., despite the fact that he never comes to Canada.
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Strangely, the same logic doesn’t apply when an American buys a regular book (or a car) which might bring into Canada with him and employ here. It is true that barefoot running is easier for Canada to assess such items at the border vs cyberspace, nevertheless know of no cases of Americans being taxed on the books or cars they bring together when GSA SER Verified List a number of to have a home Canada for about half 12 months.
