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The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the best they can collect it (other than self-assessment system) is by having an online sales tax. Further, it is claimed that businesses in the eu suffer an enormous competitive disadvantage because they have to collect Vat (VAT) but others don't.

As one example, consider digitized products which you might sell on the Canadian website, such as e-books, downloadable software, or subscriptions to content. Lowering the be consideration to be selling "intangible personal property". Unless your gps is also considered "intellectual property" (such as software or e-books that you produced or have obtained the rights for), you'll to charge G.S.T. The rationale why, solution . the Canada Revenue Agency, is that it really COULD use inside Canada, even whether it isn't.

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Since they paid the G.S.T., would you think you should charge it again, would you? "Wrong!", smiles the Cheshire pussie. Since you are a registrant positioned in Canada, you are required to charge and remit the G.S.T.

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