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As one example, consider digitized items which you might sell by means of Canadian website, such as e-books, downloadable software, or subscriptions to content. You’d be considered with regard to selling “intangible personal property”. Unless your products is timber “intellectual property” (such as software or e-books that you just produced or have obtained the rights for), you should charge Delaware.S.T. The reason why, according towards Canada Revenue Agency, is it COULD be employed inside Canada, even are going to isn’t.
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Say you sold a subscription for accessing digitized content (from various sources) from the Canadian website to a customer in north america. Since there work just like restrictions in respect of where the intangible personal property end up being used, as well as the property isn’t considered intellectual property (nor the provision of a service), the American customer is governed by G.S.T., even though he never comes to Canada.
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