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Goods shipped to Canada are at the mercy of G.S.T. on importation. Such tax usually assessed at the border. But what if you’re an Canadian registered for K.S.T., selling to a Canadian customer but your supplier was in a foreign country?
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Say you sold a regular membership for accessing digitized content (from various sources) in the Canadian website to a customer in our great. Since there aren’t any different than restrictions to where the intangible personal property in a position to used, along with the property is not considered intellectual property (nor the provision of a service), the American customer is governed by G.S.T., whether or not he never comes to Canada.
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Not only is it critical identify whether a taxable sale was made in Canada or not, likewise where in Canada. If it was made (or deemed to be made) in any of the Harmonized Florida sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is because those provinces have allowed Canada to gather their provincial sales taxes for all of them.
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