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As one example, consider digitized goods that you might sell with your Canadian website, such as e-books, downloadable software, or subscriptions to content. You would be considered to be selling "intangible personal property". Unless your product is electricity "intellectual property" (such as software or e-books which you produced or have obtained the rights for), you will obtain to charge G.S.T. Explanation why, in line with the Canada Revenue Agency, is that it COULD be applied inside Canada, even this isn't.
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Of course, this should be only scatching leading. This entire article is an over-simplification in the very complex subject. You will definitely need professional advice to a person through E-Commerce Taxland.
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Not only is it critical to discover whether a taxable sale was earned in Canada or not, furthermore where in Canada. Can was made (or deemed to be made) any kind of of the Harmonized Florida sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This happens because those provinces have allowed Canada to pick up their provincial sales taxes for associated with them.
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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on your website and invoice that use of such intangible personal property in Canada is prohibited (or requires an additional fee as well as the payment of G.S.T.).
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