In Canada, exports are “zero-rated” sales for .S.T. purposes. This indicates that when you ship a procedure to someone outside Canada, you don’t charge S.S.T. Yet, you talk about claim (or deduct inside 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 transferring.
As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on your internet site and invoice that utilization 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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