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Say you sold a membership for accessing digitized content (from various sources) personal Canadian how does someone a customer in american. Since there are no restrictions as to where the intangible personal property possibly be used, and also the property isn't considered intellectual property (nor the provision of a service), the American customer is controlled by G.S.T., even though he never comes to Canada.
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In Canada, exports are "zero-rated" sales for L.S.T. purposes. This means once you ship a product to someone outside Canada, you don't charge L.S.T. Yet, you get declare (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 ship. The idea, I suppose, is to encourage transferring.
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