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Goods shipped to Canada are depending upon G.S.T. on importation. Such tax frequently assessed at the border. But what additionally Canadian registered for Gary the gadget guy.S.T., selling to a Canadian customer but your supplier is there to a foreign country?
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Canada has what you probably call a national 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 transactions.
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Say you sold a subscription for accessing digitized content (from various sources) on your Canadian web site a customer in the united states. Since there are no restrictions so as to where the intangible personal property possibly be used, along with the property is not considered intellectual property (nor the provision of a service), the American customer is at the mercy of G.S.T., even when he never comes to Canada.
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