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Say you sold a membership for accessing digitized content (from various sources) on your Canadian website to a customer in united states. Since are actually no restrictions as to where the intangible personal property become used, and the property is not considered intellectual property (nor the provision of a service), the American customer is depending upon G.S.T., even though he never comes to Canada.
Of course, this is only scatching top. This entire article a over-simplification very complex subject. Completely definitely need professional advice to aid you through E-Commerce Taxland.
In Canada, exports are "zero-rated" sales for T.S.T. purposes. This means that when you ship a creation to someone outside Canada, you don't charge G.S.T. Yet, you get to claim (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 move. The idea, I suppose, in order to encourage exporting.
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