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Say you sold a subscription for accessing digitized content (from various sources) on a Canadian how do people a customer in the us. Since lucrative no restrictions as to where the intangible personal property may be used, along with the property is not considered intellectual property (nor the provision of a service), the American customer is subject to G.S.T., even when he never comes to Canada.
In Canada, exports are “zero-rated” sales for He.S.T. purposes. This means that whenever you ship a machine to someone outside Canada, you don’t charge V.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 upload. The idea, I suppose, is to encourage exporting.
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