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Canada has what you might call a national sales tax or a value added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian financial transactions.
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The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the only way they can collect it (other rather than a self-assessment system) is a great online sales tax. Further, it is claimed that businesses in the european Union suffer a major competitive disadvantage because contain to collect Value Added Tax (VAT) but others don't.
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Say you sold a regular membership for accessing digitized content (from various sources) during your Canadian site a customer in america. Since there are no restrictions relating to where the intangible personal property the used, and the property isn't considered intellectual property (nor the provision of a GSA SER VPS), the American customer is governed by G.S.T., whether or not he never comes to Canada.
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