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“Wrong!”, smiles the Cheshire hamster. Since they paid the G.S.T., they’re worth think you would have to charge it again, would you? Since you are a registrant present in Canada, you’re required to charge and remit the G.S.T.
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Say you sold a regular membership for accessing digitized content (from various sources) from your Canadian web site a customer in the us .. Since there aren’t an restrictions regarding where the intangible personal property can be used, and the property isn’t considered intellectual property (nor the provision of a service), the American customer is prone to G.S.T., despite the fact that he never comes to Canada.
You’ll need professional advice to convince you through E-Commerce Taxland. This entire article is an over-simplification connected with a very complex subject. Of course, this always be scatching the surface.
The rationale behind this follows: Since countries can’t collect florida sales tax on Internet transactions at their borders, the finest they can collect it (other than just a self-assessment system) is with an online florida sales tax. Further, it is claimed that companies in the european countries suffer a significant competitive disadvantage because they have to collect Vat (VAT) but others don’t.
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Such tax regularly assessed in the border. But what a high level Canadian registered for Grams.S.T., selling to a Canadian customer nonetheless supplier is there to a foreign country? Goods shipped to Canada are subject to G.S.T.