As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on your website and invoice that involving such intangible personal property in Canada is prohibited (or requires an additional fee and the payment of G.S.T.).
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Canada has what you call a national sales tax or something added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian transactions.
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Don't think it? You might be surprised if you were to go and also look a few time of things you've replied. Look at some messages you've sent, and then consider saying the really words in a face-to-face or just a telephone chat. Sound a little rough? Don't feel too bad, it exist in the better of us, just try to maintain this notion the when you're typing out a message or instant message.
As one example, consider digitized that you might sell from an Canadian website, such as e-books, downloadable software, or subscriptions to content. You'd be considered to be selling "intangible personal property". Unless goods is also considered "intellectual property" (such as software or e-books which produced or have obtained the rights for), you have to charge You have g.S.T. The reason why, according to the Canada Revenue Agency, is that it COULD be utilized inside Canada, even if it isn't.
