In Canada, exports are “zero-rated” sales for He.S.T. purposes. This means any time you ship a product to someone outside Canada, you don’t charge G.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 dispatching.
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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on managing costs and invoice that associated with 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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